Pound Sterling vs. Euro Week Ahead Forecast: Pennant Pattern Bodes for Further Upside

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.

Pound Sterling has made a fresh push higher against the Euro over the past 24 hours with the GBP/EUR exchange rate moving above the key 1.16 level once more.

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

The British Pound is seeing a strong finish to October, a month that saw it outperform all its major rivals by a comfortable margin, and the market is showing it likes the idea of a strong Conservative showing in the December 12 snap General Election.

Foreign exchange strategists at Westpac - the Australia-based international investment bank - have told clients they see value in buying Sterling against the Euro.

Pimco, the largest bond fund in the world, has started buying more Pounds, according to Geraldine Sundstrom, managing director and portfolio manager at the fund.

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.

It is reported that France's President Emmanuel Macron is looking to extend the Brexit deadline to November 15, thereby rejecting the request from the UK Parliament for a deadline to be extended to January 31. This could actually be a good thing for the Pound.