EURGBP Hits New 6-month Lows on Latest Polls

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Written By: Angeline Feliciano
Reviewed By: Alejandro Zambrano
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    Summary:
  • The pound is off to its six-month highs as latest polls show that Conservatives are maintaining a strong lead ahead of the UK general elections.

The British pound is starting this week with a bang! EURGBP is trading at new six-month lows as European markets open. The currency pair opened with a 19-pip gap from from Friday’s close at 0.8545. It found resistance at 0.8558 and dropped to a new low around 0.8533.

The rally is fueled by news that the Conservatives are ahead in the latest polls. According to data released by Survation, Conservatives have a strong lead ahead of UK’s general elections next month at 42%. Labour follows in second at 28%, Liberal Democrats in third at 13%, Brexit Party in fourth at 5%, and Green in fifth at 3%. Meanwhile, a poll from YouGov show that Conservatives are up 45%.

EURGBP Outlook

This was widely taken as positive news for the pound as it would make it easier for Prime Minister Boris Johnson to push for a Brexit deal in Parliament. If sellers can maintain momentum, the next support level for EURGBP is around 0.8480 where it previously made lows in March 10, March 24, and May 5.

Do note that leaders of the two leading political parties, Boris Johnson and Jeremy Corbyn, are scheduled to debate on live TV tomorrow and could cause volatility on pound pairs. Should EURGBP find fresh bids, it could bounce up to 0.8590 where it found support in October 21 and November 5.

Written By: Angeline Feliciano
Reviewed By: Alejandro Zambrano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.

Published by
Written By: Angeline Feliciano
Reviewed By: Alejandro Zambrano