The next big step for this currency pair?
It's been a long struggle since 2016, but this currency pairing is finally showing signs of life.
21st October 2019 10:20
by Alistair Strang from Trends and Targets
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It's been a long struggle since 2016, but this currency pairing is finally showing signs of life.
GBP vs euro (FX:GBPEUR)
This currency pairing, for so long looking trapped in a dark cave, is actually starting to develop some recovery potential. Perhaps Boris is doing a Mr Trump — ridiculed by media but regardless, appearing to do something right!
A key level has developed at €1.1688. This isn't one of our usual "higher high" things but instead, a calculated level above which it 'should' make travel toward €1.2039 difficult to avoid.
In the event of the market actually closing above this target level, a longer term €1.2869 computes as possible.
It's worth taking a step back and viewing the chart.
Historically, since 2016 this pairing has experienced issues at the €1.20 level.
For this reason, we're suggesting only closure above €1.2039 is liable to introduce the next big step in the pairing’s future.
But it's also worth considering if the present Brexit hiatus continues, it's very probable the relationship will continue in a trading range between roughly €1.10 and €1.20.
For things to start going wrong, we would raise an eyebrow if the pairing now weakens below €1.140 as this threatens reversal down to an initial €1.1215.
If broken, our secondary calculates at €1.0920. Visually, this shall indicate a very firm return to being trapped in its "same old, same old" trading range.
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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