GBP/EUR

The GBP/EUR pair is showing signs of topping, and with a possible topping pattern forming may be ripe for a correction, however, more downside is required to confirm.

The Bank of England’s Rate Meeting as well as Federal Reserve’s FOMC are the major events on the economic calendar in the week ahead.

The GBP/EUR pair may reach the important 1.2000 handle as Sterling benefits from talk of ‘Soft Brexit’ - although the European Central Bank rate meeting could provide volatility in either direction.

GBP/EUR is set to end 2016 at 1.16 but then rise to 1.21 by mid-2017, argues Lloyds’ Mahadevan.

The GBP/EUR had been threatening to break lower, however, data showing resilient Business Investment and GDP have helped support the pair.

The pound to euro pair is steadily pushing higher towards our targets at 1.1900 and 1.2000, and although it is looking a little overbought, the uptrend remains intact and likely to extend following a pause.

GBP/EUR is in a short-term uptrend which in the absence of bearish indicators is likely to extend, with 1.1800 and 1.2000 as possible upside targets.

The question on everyone’s mind at present is just how far the pound sterling can push its luck against the euro.

On the 30th of March I was writing that the pound may have found a floor against the euro and that April promised to be a steady month for the pair. 

Those who were hoping for the pound sterling to bounce higher towards 1.30 will be sweating bullets.

The GBP/EUR is moving in a broad sideways zone with its floor at 1.2577 and ceiling at 1.3000.

The solid support seen in the GBP to EUR conversion rate of late has some analysts suggesting the rebound could advance well beyond 1.30.