The British received support

During the calm trades, the British pound received support against the euro on the message that the European Parliament is seeking trade relations with the UK. So, the European Parliament published a decision on the trade association with Britain. As a result, the UK can get privileged access to the single eurozone market, which will significantly advance the negotiations on Brexit and increase the authority of Theresa May.

This is very optimistic news about the British, which is clearly evident in the cross-rate EUR/GBP. The break of support at 0.8830 indicates the possibility of further decline and resumption of the general downtrend.

Expectations for this cross are described in the entry “Cross-rate signals: EUR/GBP returns to a downtrend”.

The nearest support is at the level of 0.8810-00. The breakthrough of this level will open the way to further reduction of the pair EUR/GBP.

Fig. EUR/GBP. The current price is 0.8820.

Hanzenko Anton