Trade:Selling below 129.25.Buying above 130.85.Risky trade: selling with sl 130.80.
David Cameron said on Friday that EU leaders and officials will breathe "a sigh of relief" if he loses the general elections in May. Cameron said, If you vote for anyone else, you are likely to get a prime minister who comes here and says, 'You can all relax, there will be no renegotiations, no referendum, no difficult choices, no difficult reforms breathe a sigh of relief.' In case, Cameron wins the upcoming election, he opts for the EU referendum. Compared to the euro, the pound sterling looks more fundamentally strong. Traders prefer to buy the pound on dips, but not the euro. The UK's new government will print the longer-term outlok for this pair and especially the GBP.
The pair stalled its 3-week losing streak and managed to close at a week high. The parallel resistance seems at 0.7301. In case the price closes above 0.7300, we can expect a strong upswing (250 pips). But the chances are remote. Support is found at 0.7210 on a closing basis. At the Asian session, the pair is trading on a negative bias. Intraday support seems at 0.7229. Weekly support is found at 0.7190 and 0.7150. It sets a minor base around 0.7100. We recommend intraday selling below 0.7210 with targets at 0.7190, 0.7150, and 0.7100. We are highly bearish towards the euro on a long-term view. Keeping this in mind, we recommend using any rise to sell or place sl at 0.7305 on a closing basis holding the selling positions. The panic will be triggered below 0.7100 in case the daily price closes below this level. A new short-term optimistic trend will ignite above 0.7305, but chances are very remote. The UK's political disturbances can produce a relief rally in the near term.
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