EU reportedly takes aim at the City of London financial industry w/ MIFID 2 rewrite
GBPUSD falls on the newsThe EU is reportedly taking aim at the City of London financial industry with a MIFID 2 rewrite .
The MiFID II (Markets in Financial Instruments Directive) is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry.
The GBPUSD moved sharply lower after the headline (better US data is also helping to support the greenback). Technically looking at the hourly chart, the moving average cluster and 50% retracement in the 1.30535 to 1.30744 area ended up stalling the price today at the highs. Sellers against those levels were rewarded with the fall on the news.
On the downside watch the lower trend line at 1.29847. Yesterday the price fell below that level only to snap back higher. I would expect support buyers against the old line on the 1st test.