The race for the Brexit decision is very close, but the polls show a “remain” majority: following a last week’s Ipsos MORI telephone pool, the “remain” vote are 55% against a 37% Brexit.
Furthermore the Q1 2016 GDP expectations, following Unicredit, should be confirmed at 0,4% QoQ despite a flat industrial production and a construction output slightly decreased. A positive GDP data should be pushed by the British household consumptions.
The EUR/GBP pair in the meantime is moving slightly low, after having touched a multi-week low on Friday at 0,7650 and after having regained ground during the weekend braking the 0,7700 level. At the time of writing the cross is trading at 0,77354 down 0,4%.
The pair price action, however, should change during the trading session with the European flash PMI on the books starting from 9:30 am.
Sterling gains even against the US Dollar with the GBP/USD which is trading at 1,4526 at the moment, up 0,15% and continuing the upper move started last week regaining the ground loss yesterday. Pushing this movement is also the USD correction against its major peers. The cross, during today’s session, should be particularly conditioned by the risk sentiment on the market, with an eye on the US manufacturing PMI and the Fed spokesmans speeches.
Looking at the technical analysis for the EUR/GBP cross, the first significant support could be seen at 0,7647 (19 May low) while on the flip side the first significant resistance could be find at 0,7787.
Regarding the GBP/USD pair on the other hand, the levels to consider are seen at 1,4600 (round number) on the upside, while at 1,4477 on the downside.