The move was a bit more quiet against the Euro last week, as both currencies were getting slammed against both the USD and the Yen. But, given the lack of theatrics around that move there may be some workable scope, as I had shared in the Thursday article on the Euro. In that piece, I looked at EUR/GBP as a possible mechanism for working with a Euro bounce, if one was to show. Well, that bounce did not show against USD or JPY, but it did against GBP as the pair rose by as much as 59.6 pips on Friday.
Keeping this as interesting for continued GBP-weakness is the build of a falling wedge formation, which will often be approached with the aim of bullish reversals. Price action still remains within this building formation so we’d still need to see some bullish price action to make this a more pronounced case of reversal potential, but it’s worth keeping an eye on for next week.
The forecast for EUR/GBP will be set to neutral for the week ahead.
Keeping this as interesting for continued GBP-weakness is the build of a falling wedge formation, which will often be approached with the aim of bullish reversals. Price action still remains within this building formation so we’d still need to see some bullish price action to make this a more pronounced case of reversal potential, but it’s worth keeping an eye on for next week.
The forecast for EUR/GBP will be set to neutral for the week ahead.