EUR/GBP market turns indecisive ahead of the Brexit vote
- EUR/GBP created a big doji candle yesterday, signaling indecision in the market.
- The pair could drop if the Brexit vote is defeated by a margin of 50 or below.
The EUR/GBP market has turned indecisive ahead of the historic Brexit vote.
The currency pair witnessed a solid two-way business yesterday, before ending largely unchanged on the day. Essentially, the pair charted a doji candle, which is widely considered a sign of indecision.
A close below 0.8875 (previous day's low) would signal a continuation of the sell-off from Monday's high of 0.9062. It is worth noting that the pair is already on the defensive, having closed below the support at 0.8944 (Jan. 4 low) on Friday.
Even so, the breakdown could end up trapping bears on the wrong side of the market, if the Brexit vote is defeated by 100 or more votes. Moreover, a loss this large could lead to heightened political uncertainty.
Sterling, however, may pick up a strong bid, sending EUR/GBP below 0.8875 if the vote is defeated by a margin of 50 or below. Moreover, that would embolden UK's May to try for a second approval.
As of writing, the pair is trading at 0.89.
EUR/GBP Technical Levels
Today Last Price: 0.89
Today Daily change: -13 pips
Today Daily change %: -0.146%
Today Daily Open: 0.8913
Previous Daily SMA20: 0.8994
Previous Daily SMA50: 0.8922
Previous Daily SMA100: 0.89
Previous Daily SMA200: 0.8863
Previous Daily High: 0.8954
Previous Daily Low: 0.8875
Previous Weekly High: 0.9062
Previous Weekly Low: 0.8923
Previous Monthly High: 0.9089
Previous Monthly Low: 0.8863
Previous Daily Fibonacci 38.2%: 0.8924
Previous Daily Fibonacci 61.8%: 0.8905
Previous Daily Pivot Point S1: 0.8874
Previous Daily Pivot Point S2: 0.8836
Previous Daily Pivot Point S3: 0.8796
Previous Daily Pivot Point R1: 0.8953
Previous Daily Pivot Point R2: 0.8992
Previous Daily Pivot Point R3: 0.9031