EUR/GBP Rate at 21-Month Low Post-European Parliament Elections
Investors will begin the week in a state of uncertainty regarding the outlook of Europe's political landscape.
The four-day European Parliament elections concluded on Sunday. According to Reuters, the results showed a significant gain for eurosceptic-nationalists, who have displaced liberals and greens.
Additionally, President Emmanuel Macron dissolved the French Parliament, calling for early legislative elections later this month after losing to Marine Le Pen's far-right party in the European Union elections.
All this puts pressure on the structure of the European Union, weakening the euro's value.
As shown by the EUR/GBP chart, trading on the currency markets opened on Monday around the 0.8465 levela price not seen since August 2022.
According to the technical analysis of EUR/GBP today:
The price broke below the critical support level of 0.85, which had been in place since 2023;
In terms of price dynamics since autumn 2022, the market is in a downward trend (as indicated by the red channel). The bearish break of 0.85 reinforces this trend;
The median line of the channel could serve as a consolidation zone below 0.85, confirming the relevance of the channel;
The 0.85-0.853 zone may provide significant resistance in the future if bulls attempt to rectify the situation.
In a negative scenario for the market (e.g., a political crisis within Europe), the EUR/GBP price could potentially reach the lower boundary of the indicated channel.
Read more: https://fxopen.com/blog/en/oa-eur-gbp-rate-at-21-month-low-post-european-parliament-elections/
Text source: Forex Trading Blog
