Week Ahead Pound-to-Euro Exchange Rate

The Pound has clocked up a hat-trick of new 2019 highs against the Euro in recent days and now enjoys a bullish set-up on the charts that could easily portend further gains if not for the looming Thursday general election, which will almost certain to dominate British exchange rates in the week ahead. 

The Pound-to-Euro rate rose strongly last week and still retains the initiative on the charts, although it's approaching a level that's tipped to put up tough resistance while election headlines have this weekend turned into a headwind and could weigh on the British currency in the days ahead. 

The Pound-to-Euro rate was clobbered in the final session of last week after an IHS Markit PMI survey pointed to another economic contraction in the final quarter, although technical analysts at Commerzbank say the nascent correction lower could continue in the days ahead. 

The Pound-to-Euro rate is likely to build on last week's gains in the coming days, according to technical analysts at J.P. Morganand Commerzbank, who say the charts favour a continued push higher although many others expect movements in the election polls to remain the dominant driver of price action. 

Studies of the GBP/EUR exchange rate's charts show the pair pausing at the top of a long-term range, with bullish price patterns indicating a bias towards more upside in the future.

Studies of the Pound-Euro charts show the pair trading sideways in a bullish continuation pattern at the top of a longterm range.

Studies of the GBP/EUR charts show the pair has reached a ‘glass ceiling’ that has applied the brakes to a multi-week rally and further upside is subject to a break of this resistance.

Pound Sterling faces another volatile week ahead, with focus on the UK Parliament where MPs will once again look to vote on a Brexit deal, the passing of which will almost certainly allow the currency to test fresh multi-month highs against the Euro.

Our technical studies of the GBP/EUR charts indicate the bulls are back in control and likely to push the exchange rate higher over the following days; however Brexit headlines will continue to be the primary driver of Sterling and therefore we expect substantial volatility.

GBP/EUR could really tumble if it breaks below a key support level, but volatility will be heightened next week as the EU and UK seek a fresh Brexit accord.

Studies of the GBP/EUR charts indicate that limited near-term weakness is likely, but the outlook on longer-term timeframes is more uncertain. Expect politics to remain in the driving seat for Sterling from a fundamental perspective.

The Pound-to-Euro rate is set to begin trading around 1.1288 at the beginning of the new week after closing the previous one around 1.28% higher on Friday, and studies of the charts indicate that tough resistance up ahead may cause a temporary pullback in the pair.  

Pound Sterling recovers back into established range against the Euro and technical studies suggest more upside, but we are wary of heightened politically-inspired volatility over coming days.

GBP/EUR has reached resistance from a trendline and pulled-back lower, but if it breaks above the 1.1080 highs that will provide confirmation of a breakout above the trendline and more upside.

The GBP/EUR exchange rate will be trading at around 1.0980 at the start of the new week after rising a solid 2.00% in the week before and studies of the charts suggest there is mounting evidence to support a reversal in the short-term, however, longer-term this is debatable.

Pound Sterling buys €1.0924 at the start of the new week after fall 1.65% in the week before. Studies of the charts suggest the pair will probably go lower in the coming days as the dominant downtrend extends.

We are wary that weekend reports that suggest the UK government is doubling-down on preparations for a 'no deal' Brexit could send the currency lower when markets open.

The Pound-to-Euro rate is set to begin trading around 1.1143 at the beginning of the new week after retreading a familiar range throughout the previouos one, although studies of the charts suggest the pair is at an inflection point from which it could break in either direction. 

Technical and fundamental outlook for the British Pound against the Euro for the week commencing July 14.

Pound Sterling is trading at around €1.1138 at the start of the new week, after recoding its ninth consecutive weeks of declines in the week prior. Studies of the charts suggest the pair will probably go sideways over coming days but owing to the overriding negative trend it will come as little surprise to readers to hear that the risks remain skewed to the downside.