Theresa May will not be very comfortable and it is possible we may see a leadership challenge.

I think the fragility of the Euro and the Pound was tested yesterday possibly ahead of tomorrows meeting of Theresa May and the 1922 Committee

Theresa May will not be very comfortable and it is possible we may see a leadership challenge.

The 1922 Committee, formally known as the Conservative Private Members Committee is the parliamentary group of the Conservative party in the House of Commons. The committee, consisting of all Conservative back benchers, meets weekly while parliament is in session and provides a way for backbenchers to co-ordinate and discuss their views independently of frontbenchers.
The committee can play an important role in choosing the party leader.
The group was formed in 1923 but became important after 1940.
It is generally closely related to the leadership and under the control of party whips.

Theresa May will not be very comfortable and it is possible we may see a leadership challenge.

Euro$
Will it stay beneath the mighty 1.1500?
Guys this is pivotal. It may bounce back some today and possibly even test what could now be the ceiling at 1.1500 instead of the floor. However if this slips further going through 1.1450 my next calculated support level is just above 1.1400 where I have a huge Fib level.

Cable
Cable tested a 1.2940 yesterday (where I have another Fib level) bounced and now tests the psychological 1.3000 as I type this. I am not buying it. For this to go higher it needs to get up there at 1.3300 in my opinion. The weakness to the downside is at 1.2900 where I calculate the last level of support to be before 1.2800 and then 1.2700.
Are we going to see 1.2500..? – Quite possibly.

I am going to hang tough today and await the news from tomorrows UK government meeting.

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About Author

Clive Arneil

Clive Arneil worked for major brokers for over 20 years trading most instruments in the Foreign Exchange markets as well as Derivatives. Brokered deals on behalf of some of the worlds largest banks including Barclays, Citibank, UBS, Nat West and the Bank of England. Worked mainly in the UK but also in Switzerland, Germany and the U.S. Retired from the Money Market at the age of 40 and worked as a financial data feed specialist supplying market data to Banks, Brokers and Spread-Betting companies. Still trading and teaching people the skills required to master today’s volatile markets.