The Pound has started to move lower in the run up to the triggering of Article 50.
Sterling traders should keep hold of their bullish bets despite the currency going through the eye of the storm, advises head of strategy Hans Redeker at investment bank Morgan Stanley.
GBP/EUR is channelling higher on the four-hour chart, can it continue?
A series of higher highs and higher lows is unfolding on the GBP/EUR four-hour chart could be indicative of the beginning of a short-term uptrend.
GBP/EUR bounced from its 1.1381 low at the start of the week following profit-taking on GBP shorts and news reports that suggested the Scottish referendum might not be as much of a horizon-risk as had previously been thought.
The Euro could remain flat for an extended period of time due to chronically subdued inflation, according to a recent report by Danske bank.
Markets may have interpreted Scottish developments only as “a slow-moving drag for the Pound”.
After two consecutive weeks of losses for the Pound against the Euro, which has seen the exchange rate fall from highs of 1.1906 to lows of 1.1378, the pair now looks at risk of further downside to the 1.10 lows, according to analysis seen by Pound Sterling Live.
GBP/EUR has fallen steadily during the past week, reaching lows of 1.1378 on Friday, before recovering and closing above 1.1400 - our target from the previous week’s analysis.
Pound Sterling has fallen below another key level as markets absorb the Euro-positive tone communicated by the ECB at their March policy meeting.
The Pound rose by 0.3% against the Dollar and the Euro during the budget as investors took confidence from the Chancellor’s upbeat tone and bullish revisions to growth forecasts for the current year.
Pound Sterling has been in an unanswered decline against the Euro since January 23 and our studies suggest the down-move is likely to extend a little further yet but at a more gradual pace than witnessed of late.
Pound Sterling retains a negative bias against the Dollar and the Euro with another leg lower in the currency complex being sparked on the back of the release of data which showed a further slowdown in high-street retail sales as shoppers cut spending, especially on non-essentials.
GBP/EUR has been bleeding lower over recent days and several market technicians are saying this is likely to continue.
UK government bonds, also known as gilts, should start to yield more as the economy remains stable and inflation expectations build, says the chief economist at advisory service Capital Economics, Jonathan Loynes.
GBP/EUR lost a substantial amount of ground last week and its likely to continue after breaking below a key trendline on the daily chart.
A survey of managers in the construction industry revealed a more 'constructive' outlook for the sector than had previously been expected.
The exchange rate is currently pushing up against a multi-month trendline drawn from the late 2015 highs, however, it looks likely to pierce above the trendline.
GBP/EUR rolled over at the 1.1828 highs and formed a bearish Three Black Crows Japanese candlestick pattern, which consists of three down-days in a row.
GBP/EUR has climbed to new highs of 1.1828 and although it is currently pulling back, the short-term uptrend remains intact.
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