EUR/GBP rises above 0.9000 for the first time since September
The pound is falling here as May is said to pull the vote tomorrow because she wants to renegotiate things with European officials. However, with the European Commission laying down the hammer and saying that there won’t be any further renegotiating, it’s not helping May’s cause for postponing the vote at all.
As a result, the pound is dipping across the board with EUR/GBP rising to three-month highs while GBP/USD is threatening the lows once again.
It would appear that the pound won’t even get a chance to see any short-term reprieve which I thought it would from the vote being pulled, but the backdrop in how all of this unfolds matters in that.
There are numerous sources now reporting that May will pull the vote tomorrow and that she is doing it so that she can buy time to ask the EU for a better deal. That is just not going to happen as European officials have reiterated today. And that is why there is just no reprieve for the pound as the EU has already shot the idea down dead on arrival.
EUR/GBP now looks to eclipse the 24 September high @ 0.8997 and will be looking towards resistance levels near 0.9030 and 0.9050 next. This is turning into a really rough time for the pound and it looks like it could get even uglier from here.