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The British Pound's relentless sell-off against the Euro extends into its 14th consecutive day on Thursday, May 23, with political intrigue likely to calm down as voters across Europe head to the polls.

Media are typically restricted in their political coverage on voting days, and because the Pound is now a headline driven currency, we are unlikely to see Wednesday's frenzied speculation on Prime Minister Theresa May's future repeated.

For Sterling the focus is now on when the Prime Minister stands down, and who the successor will be.

Should Prime Minister Theresa May announce her retirement sooner, rather than later, then the Pound could recover some lost ground, according to foreign exchange strategists

That the Pound dislikes uncertainty is unsurprising, and the same rule can be applied to all currencies.

There is an abundance of uncertainty to keep foreign exchange traders occupied at present: there is a growing, almost overwhelming, opposition to May remaining in office from Conservative MPs as well as her own Cabinet.

The GBP/EUR rate fell 1.1311or (0.88235 for EUR/GBP) in mid-week trade as the scale of the opposition to May's final pitch to pass a Brexit deal through the House of Commons became evident. 

The Westminster rumour mill then went into overdrive as speculation on whether May would resign grew. Further pressure was heaped on May when Commons Leader Andrea Leadsom last night quit the cabinet, in what amounts to the most high-profile resignation suffered by May's government for some time.

For Sterling, the downtrend is now firmly entrenched and, from a technical perspective, would be expected to continue.

However, markets are unpredictable and some would say to be wary of a recovery.

In the midst of chaos, there is also opportunity. Very much applicable to GBP markets right now. Pound trading with a large degree of political risk premium. GBP typically bounces back once the eye of the Westminster storm passes.

EUR/GBP Technical

After yesterday closed above the 200-SMA line of 0.87900 now the pairs are trading at 0.88270. But this is the 14th consecutive days the EUR/GBP is trading on the upside, RSI is 74.000 which indicate over-brought of the currency pair.

The 200-SMA will be providing the signal where the EUR/GBP is heading, immediate support comes in at 0.87900 below there the 20-EMA level of 0.86984 will be the target support.

source: PoundSterlingLive