Home pages - full list (A-Z)

EUR/GBP Set for Big Move Lower on Impressive Technical Formation

The euro fell sharply against the British pound on Friday after the EU's chief Brexit negotiator, Michel Barnier, said he was determined to strike a deal with the UK. A near-perfect Head and Shoulders pattern now indicates a move in EUR/GBP into the high 0.87s.

#News #EUR #GBP #USD
Email share     Facebook     LinkedIn    Twitter

Around 11am in London, transcripts of Michel Barnier’s comments to British MPs on Monday were published—transcripts in which Barnier expressed a desire for the EU to form an “unprecedented relationship” with the UK and for simplified checks on the troublesome Irish border.

Of the two Brexit affected currencies, it has been the pound, not the euro, that has consistently been sold off whenever the possibility of “no deal” has been raised; it was the pound, therefore, that made the best of Friday’s developments.

The pound gained handsomely across the board in the hours following the transcripts release. It did best relative to the euro, with EUR/GBP giving up 1 percent on its way down to 0.892 (GBP/EUR 1.121). The pound gained 0.8 percent versus the dollar, rising to 1.303, but had, by the time of writing, given back much of those gains following Friday afternoon’s higher-than-expected reading for US hourly earnings.

Barnier also told British MPs that he wanted to “establish the closest relationship possible with your country.”

“Let me repeat also that the no-deal scenario is not our scenario,” he added.

Since early August, EUR/GBP has been tracing out a textbook Head and Shoulders pattern (see daily price chart, above) and with Friday’s plunge, and likely close, below the pattern’s neckline (0.8954), the cross is likely to fall further. Per technical trading rules, a reasonable target for EUR/GBP is now 0.878, which matches the April-July average.


Further Reading


AUD/GBP Between a Rock and a Hard Place – USD Strength


Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 2019

GBP’s Bright Start to the Year Is a Distant Memory

The British pound was the worst-performing major currency in the April-June period and remains “impossible to forecast” amid a Tory leadership battle that might force “no deal” or a general election.

Last update: 30 Jun, 2019


Posted to: News

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Get a Better FX Deal when you Send and Spend Abroad.


Do NOT follow this link or you will be banned from the site!