Pound quotes have been shaken by news and rumours about Brexit negotiations for a long time. Many of them are not confirmed. However, from the end of August on the EUR/GBP, we are seeing the strengthening of Pound. The main reason for this is the recent promising reports that some agreements will be reached. On the other hand, we have political reasons that weaken the Euro. Recently, it was a matter of the Italian budget. It is even speculated that the European Commission may want to reject the project.
There were elections in Bavaria over the weekend. The ruling CSU has lost the absolute majority it has had for several decades. As many as 10% received anti-immigrant AFD. This is another result that complicates the situation in Germany by weakening Chancellor Merkel. The chart, however, is undergoing an upward correction of sharp drops from previous weeks. It seems that the first target of the demand will be the level of the previous low or the area where the correction reaches the extent of the previous adjustment.