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  • EUR/GBP: Based above a 61.8% Fibonacci retracement of the May-to-August advance at 0.8794.
  • Jeremy Corbyn is returning the ball in Parliament and has said Boris Johnson should have resigned following the Supreme Court ruling.

EUR/GBP is currently trading at 0.8854, up by 0.44% at the time of writing having travelled up from a low of 0.8810 to a high of 0.8880 as Boris Johnson makes his statement to Parliament.  

EUR/GBP popped on Wednesday despite the recent disappointments in the PMIs which drove the euro off a cliff as GBP takes a wallop as a hard-Brexit remain a possibility and volatility returns – UK politics is a mess and the market senses more delays, more disruptions and ongoing Brexit disarray likely to quash any brave attempts from Sterling bulls.  

UK Parliament in session: Johnson and Corbyn go head to head

At the time of writing, the opposition leader, Jeremy Corbyn is returning the ball in Parliament and has said Boris Johnson should have resigned following the Supreme Court ruling. Boris, in his statement, offered to allow a no-confidence vote in the government which is otherwise looking to reach a deal on Brexit, but, at the same time, is prepared to leave with no-deal.  

  • Corbyn: I want a general election.
  • Corbyn: Get an extension and let’s have an election.
  • UK PM Johnson: Parliament must either stand aside or bring vote of no-confidence

  • UK PM Johnson: This parliament does not want Brexit to happen

In other recent news,  European Central Bank  (ECB) Executive Board Member Sabine Lautenschlager has announced her resignation from the ECB board on Wednesday.

  • Sabine Lautenschlaeger resigns from ECB board

EUR/GBP levels

From a technical basis, the cross has based above a 61.8% Fibonacci retracement of the May-to-August advance at 0.8794 and is en route for a test of the 0.8891 July low. analysts at Commerzbank noted that  we have a 0.8971 channel resistance level above ahead of the 0.9016 September 9 high – “This guards the mid-July high and the 55-day moving average at 0.9035/52. Further resistance comes in at the 0.9149 current September high. Below 0.8786 (20th September low) lies the May 27 low at 0.8769.”