Here's what's in store for the pound vs euro
Political uncertainty remains the main catalyst for this pair. Our chartist looks at the key scenarios.
7th May 2019 09:46
Political uncertainty remains the main catalyst for this pair. Our chartist looks at the key scenarios.
We reviewed sterling versus the euro (GBP:EUR) back in February, successfully calculating a target level which has now been achieved.
With such levels of political uncertainty, coupled with what often appears wilful political incompetence, we quite genuinely had doubts as to anything actually happening.
Source: Trends and Targets Past performance is not a guide to future performance
Now, with the Brexit ball kicked down the beach for a while, the calculation allowing for €1.20 next remains valid, but the pairing really needs to move beyond €1.1810 to give a suspicion to the next leg up is beginning.
Unfortunately, rather than €1.20, we suspect a future rise shall first around €1.1925 level and an almost certain glass ceiling.
If trouble is coming, the pair requires weaken below €1.15 to indicate coming travel down to €1.1285.
In itself, this is not a particularly scary movement but the real danger shall appear if they close a session below €1.128.
Such a scenario runs the risk of triggering reversal to €1.08 initially. This takes the pairing into a zone where €1.03, perhaps even parity, becomes very possible.
For now, though, there is considerable hope we shall see moves in the future beyond €1.181, once again strengthening the pound (to the surprise of everyone!)
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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