Week Ahead Pound-to-Euro Exchange Rate

The Pound closed the Friday session having become the second best performing major currency of the week although there could be further gains in store for the coming days if studies of the charts and the market's evolving view on the Bank of England (BoE) outlook are anything to go by.

The Pound-to-Euro rate slipped last week as Sterling underperformed all major rivals, although the charts suggest a neutral outlook ahead of jobs and PMI data which are due over the coming days and are key to the outlook for the British currency. 

The was lower against all major currencies as markets closed Friday but it still ended the week a fraction higher against the Euro and remains above crucial support levels on the charts, although Sterling's resilience will be tested by several key pieces of economic data over the coming days.  

The Pound pared gains over the Euro early in the New Year although it still closed the week higher against the single currency on Friday and some technical analysts have said Sterling could now target levels not seen since shortly after the Brexit referendum. 

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.