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FxWirePro: EUR/GBP rangebound, focus on UK court decision on Brexit

  • EUR/GBP trades a narrow range, with day's high at 0.8599 and low at 0.8581.
     
  • The pair has slipped below and hovers close to major trendline support at 0.86.
     
  • Markets await United Kingdom's supreme court decision on Brexit due at 0930GMT today.
     
  • UK's Supreme Court is due to announce a ruling regarding the government's ability to bypass parliament and initiate the Brexit by triggering Article 50.
     
  • The decision is expected to have a major impact on the GBP markets.
     
  • Markets expect the lawmakers will refuse hard Brexit and ask PM May to adopt a soft Brexit.
     
  • Break below 50-DMA at 0.8523 could see drag till 200-DMA support at 0.8396.
     
  • On the flipside, breakout above major trendline at 0.86 could see 0.87 and then 0.8760 levels.
     
  • Technically, we see major long-term trend intact as long as the pair holds 200-DMA at 0.8396.
     

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 19.2138(Neutral), while Hourly GBP Spot Index was at 127.306 (Highly bullish) at 0610 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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