EUR/GBP & Post-Brexit events: ¿Are the buyers losing momentum?
The uncertainty around global markets remains alive after the “Brexit” referendum's outcome, especially around the Eurozone where the United Kingdom had decided to no continue with its membership. However, before that happens in “legal” terms, EUR and GBP pairs will be driven by the events that occur in the aftermath of that referendum. Last week there was a downgrade by agencies to the economic outlook for EU and UK, and also, recent political turmoil developments are still dominating the scenario.
A technical overview for EURGBP in the weekly chart is still calling for more upsides, but that should be limited by the 0.8683 zone, where the sellers played an active role during first months of 2013 year. Regarding price action, the pair seems to be overbought and maybe, we can see a retracement towards the 0.8416 level in a first degree. If EURGBP decides to choose the bearish path, it can reach the 200 SMA.