Pound versus Euro: Technical forecasts and predictions for GBP-EUR

 Unlike the GBP-USD pairing we note that the short-term setup behind the GBP-EUR chart clearly favours the EUR.

More on this below, firstly though for reference sake we note that the pound to euro exchange rate is 0.4 pct up on last night's closing rate at 1.1751.

(This is a spot reference - be advised that your bank will affix a discretionary spread. Also note that an independent currency provider will guarantee to beat your bank's offer, thus delivering you more currency. More here).

The short-term picture is problematic for sterling in the sense that the bearish indicators outweigh the bullish indicators by 6 t0 3.

However; lately momentum has edged back towards GBP with the formation of two bullish events in June. Nevertheless, the month of May was clearly in favour of the euro with 6 bear events forming and no bull events showing just how favourable momentum for the euro remains.

Intermediate-term outlook for the pound to euro

Forecasting the direction of the pound euro rate in the 6 week to 9 month timeframe would have to favour sterling however.

We note the formation of 4 bullish to three bearish events in the intermediate-term with the 31st of may witnessing the formation of a GBP-positive weekly Inside Bar.

Note that intermediate support rests at 1.1701 and resistance is higher at 1.2447; we would suggest that forecasting a move towards resistance is indeed optimistic if we consider just how mired the charts are with regards to sterling.