EUR/GBP: Politics spark reverse V-shaped session – Danske Bank

💡 DMK Insight

EUR/GBP’s reverse V-shaped action signals volatility ahead, and here’s why you should care: The recent political turmoil in the UK, particularly surrounding Prime Minister Keir Starmer, is creating ripples in the forex market. Traders should note that political instability often leads to increased volatility, which can present both risks and opportunities. The pressure on Starmer could lead to a shift in policy direction, impacting economic forecasts and currency strength. If EUR/GBP continues to react to these developments, watch for key support and resistance levels that could emerge as traders position themselves for potential swings. Additionally, keep an eye on correlated assets like GBP/USD, as movements in the pound will likely affect the euro as well. The market’s sentiment towards UK politics is crucial right now, and any significant news could trigger sharp moves. For those trading EUR/GBP, monitoring the daily chart for breakouts or reversals around recent highs and lows will be essential in navigating this uncertainty.