Where next for the pound/euro?
As no-deal Brexit fears mount, our chartist examines how low the pound could go against the euro.
6th August 2019 09:42
by Alistair Strang from Trends and Targets
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As no-deal Brexit fears mount, our chartist examines how low the pound could go against the euro.
Forex can be a blooming nuisance. When GBPEUR managed to hit our €1.085, normally we'd hope for a rebound of some substance.
Unfortunately, the relationship faltered slightly below target, forcing us to actually work at projecting the next phase.
Assuming the politicians involved achieve their usual standard of competence, the future looks pretty vile. But really cheap for tourists coming from Europe!
Source: Trends and Targets Past performance is not a guide to future performance
We're no longer entirely confident this pairing shall bounce convincingly, thanks to our target level breaking. Instead, weakness now below €1.083 looks like entering a fresh cycle down to an initial €1.0700.
If broken, secondary calculates at €1.0337.
Allegedly, the relation almost must experience some recovery at such a level, if only to generate sufficient weight for longer-term drops!
Make no mistake, by any standards GBPEUR is officially horrible as the longer-term calculation claims a gravitational attraction is being exerted from a distant looking €0.84.
To get out of this mess, sterling needs recover above blue on the chart, presently at €1.145. A miracle such as this calculates with €1.588 as an initial ambition with secondary, if bettered, up at €1.200.
In summary, it starts to appear UK goods shall be extremely attractive as exports to Europe in the event of Brexit.
Of course, whether anyone will be able to export from the start of November is the big question, if a trade arrangement remains absent.
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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