FxWirePro: EUR/GBP tests key resistance; risk-reward ratio favors bears

Amid the Brexit battle, the EUR/GBP exchange rate is at crossroads,

• Bulls are eyeing a breakout and push the pound lower against the euro as the future of the United Kingdom has become more uncertain after the European election, where Brexit Party won solid victory in the United Kingdom, with more votes than ruling Conservative party and main opposition Labour Party combined.
• The Conservative Party remains battered with internal political trouble and fighting to select the next Prime Minister after Theresa May announced her resignation effective June 7th.
• Despite the uncertainties, the UK’s trouble could be a short-lived one, whereas the EU has to deal with the rise in Euroscepticism in Italy, Germany, France, and Hungary until the next election. 

Trade idea:

The bulls are currently in charge and trying to test 0.895 resistance area but that would require a decisive break of the current declining range that has been in place since August last year. The failure to break or a false breakout would lead to between 160-300 pips drop towards the bottom of the range.