The Pound-to-Euro Rate in the Week Ahead: Uptrend Runs Head-on Into Resistance on Charts

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's rally against the Euro has faded over the course of the past 24 hours, with a sustained break above the psychologically significant 1.12 area failing to sustain.

Pound Sterling retains a positive bias against the Euro, with the GBP/EUR exchange rate rising to hit a 7-week high over the course of the past 24 hours and there is a chance the ongoing recovery can extend we are told.

Pound Sterling notched up its fourth successive weekly advance against the Euro last week, a run that gives a strong hint as to where near-term momentum lies: our technical studies of the GBP/EUR charts suggest the trend higher will probably continue.

The GBP/EUR exchange rate is today quoted at 1.1164, up 1.0% over the course of the past week, but analysts question the Pound's ability to push decisively higher.

Pound Sterling has on Thursday hit its strongest level against the Euro since July, as the market continues to see diminishing prospects for a disruptive 'no deal' Brexit taking place on October 31.

Pound Sterling appears to be holding its nerve in the current highly-charged political atmosphere in the UK, but Prime Minister Boris Johnson's call for a General Election overnight confirm significant headline risks lie ahead.

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.