EUR/GBP Rate at 21-Month Low Post-European Parliament Elections
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 level—a 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.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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 level—a 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.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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