- Summary:
- Latest polls show that the Conservative Party's lead over the Labour Party is narrowing, leading to some selling on the GBP. EURGBP gains as a result.
The EURGBP is up today as the latest polls show that the Conservative Party’s Lead over its nearest rivals has narrowed.
The latest poll results show that the Tory party retains its 42% poll rating but the Labour Party has narrowed the gap by climbing to 31%. The Liberal Democrats continue to retain their positioning around 15% while the Brexit Party lags behind. These results have led to GBP selling across board, with the EURGBP now trading higher at 0.85718.
Technical Outlook for EURGBP
The Conservative Party continues to retain a significant 11-point lead over the Labour Party, and this was factored into trades as the GBP-selling that pushed the pair higher has not been a forceful selloff. This has limited the EURGBP upside and the pair is now testing the R1 pivot on the day at present price levels.
The 0.8571 resistance area is also close to where previous lows of October 17 and 21 occurred. Therefore, a decisive close above this price level is required to open the door to the next near-term resistance target at 0.86056 (R2 pivot and previous highs of November 12 and 22). Further extension to the upside could then target the previous highs of March 11, April 23 and October 24 at 0.86795.
On the flip side, failure to break the R1 pivot could lead to profit taking, which could send the pair down to the central pivot at 0.85501. Further downside takes the pair to 0.85309, where a previous cluster of lows can be found on November 18 and 25.