It's a busy week ahead for the Sterling and Euro and therefore volatility could be elevated: Sterling has the Bank of England and Boris Johnson to consider while the ECB's Sintra conference could see the Euro hit with a surprise. Technicals however advocate for further losses in GBP/EUR.
The Pound-to-Euro rate is trading at around 1.1230 at the start of the new week, about half a percent lower than the previous week’s close. Studies of the charts suggest the exchange rate is set to continue its downtrend in the days ahead.
The British Pound remains caught in a downtrend against the Euro, and based on technical studies and the overarching political backdrop, we would expect downside pressures to remain in charge for the forseeable future.
The Pound heads higher against the Euro at the start of the week in a rebound which could extend over coming days with EU election results suggesting there has been no political earthquake in Europe.
From a technical perspective, the British Pound is in an established downtrend against the Euro which is expected to extend, but oversold conditions make us wary of a bounce.
The Pound-to-Euro rate entered the new week trading around 1.1571 at the start of the new week after closing a full one and a half percent lower than a week ago.
The technical outlook for Sterling has improved but much will depend on the outcome of cross-party Brexit talks due to conclude this week.
The British Pound is poised to move lower against the Euro over coming days, but momentum is expected to be weak and therefore any losses would likely be shallow. We will be watching the Bank of England interest rate decision and inflation forecast due out on Thursday for guidance.
The British Pound is flat at the start of the new week but political intrigue in Westminister is expected to start building as MPs return from their Easter break.
Week ahead forecast for Pound Sterling against the Euro suggests upside impetus is fading while attention will turn back to the state of the UK and Eurozone economies as Brexit headlines fade.
A pivotal week for the British Pound lies ahead with the EU due to decide whether to offer the UK a long Brexit extension while an unlikely cross-party Brexit deal between the Labour and Conservative parties could finally put an end to a period of chronic uncertainty.
The Pound-to-Euro rate is set to begin trading at 1.1617 Sunday after having fallen around half a percent in the previous week, although the pair remains above its long-term range ceiling and studies of the charts suggest renewed gains this week cannot be ruled out.
The Pound-to-Euro rate is set to beging trading around 1.1672 Sunday after closing the previous week around half a percent lower, although technical studies of the charts suggest the market still has a bullish bias and that the exchange rate could rise in the days ahead.
The Pound-to-Euro rate is to begin trading around 1.1737 on Sunday after having risen 1.3% in the previous week, although technical signals coming from the charts suggest the exchange rate can rise further during the coming days.
Our technical studies suggest the Pound could come under further pressure against the Euro in the short-term; while the tenor on Sterling has deteriorated from a technical perspective over recent days readers should expect significant volatility to buck the currency over coming days as the House of Commons votes on the EU-UK Brexit deal.
Technical conditions continue to favour Pound Sterling over the Euro and we could see gains in GBP/EUR extend after the pullback seen towards the end of the previous week. However, we are wary that Prime Minister Theresa May could bring the second meaningful vote on Brexit to parliament this week.
Technical studies are broadly in favour of further advances in Pound Sterling over coming days, however a potentially significant week of parliamentary votes could well trigger sizeable and unforseen moves in the UK currency.
The short-term technical outlook for the Pound-to-Euro exchange rate is improving, while weekend comments from French President Macron suggesting the EU should give the UK legally-binding pledges over the question of the Irish backstop will likely generate early interest amongst traders.
From a technical standpoint, the outlook for GBP/EUR is bullish after the pair broke out of a wedge pattern, and it is forecast to continue rising from here, potentially up to a target at the top of the range, at 1.1575-1.1600.
Brexit deadlock leaves fertile grounds for the Pound and Euro to enter a consolidative pattern, however one study of the GBP/EUR exchange rate's technical charts shows the pair has fallen back into what could be considered a 'buyzone'.
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