- EUR/GBP rallied as high as 0.8915 after, at one stage, it looked as the Tory Remainer rebels were about to defeat the UK government on the customs union amendment.
- On a break above 0.8980, the 0.9034 October 2017 high.
- To the downside, the 10, 200 and 21-D SMAs guard 0.8720 triangle lows.
However, Theresa May has seen off a damaging defeat in the House of Commons after the rebels attempted to force her to change her Brexit strategy. EUR/GBP fell back to a more respectable level below the 0.88 handle on the news but had started to drift higher again to a current position of 0.8880 within the volatility.
UK government won the vote on the trade bill amendment
The UK government won the vote on the trade bill amendment defeating the rebellion by pro-EU conservative lawmakers. This victory is absolutely massive for Theresa May because it now means that she can negotiate with the EU27 with them knowing she can (just about) command the will of the House of Commons.
Also, government chief whip Julian Smith told Tory MPs that he would have called a no-confidence vote in government on Wednesday had that pro-Europeans won customs union vote. All in all, this customs union vote was crucial and there were not enough of the rebel former remainers who were prepared to vote against the government in the end.
EUR/GBP levels
The price is much higher above the triangle’s resistance with higher highs with the 10-D SMA coming in as a firm support at 0.8845, (lows 0.8843). On a break above 0.8980, the 0.9034 October 2017 high on the wide is a key upside target. To the downside, the 10, 200 and 21-D SMAs guard 0.8720 triangle lows and the double bottom lows at 0.8697. 0.8620 protects a run towards 0.8526 as being the 78.6% retracement of the move from 2017 on the wide.
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