EUR/GBP - can prices remain above 0.9000 with a Brexit backdrop?
After an indecisive start to the week, bullish price action continued for the EUR/GBP pair last week and seemed to be propelled upwards by the news coming out of Brussels regarding the UK:EU Brexit negotiations on Thursday and Friday. During the week prior, EUR/GBP broke free from a descending daily channel structure that had been holding price in place. After the break and close, price this week pushed through resistance at 0.9165 and briefly viewed heights above 0.9200. However, during the later stages of the week
For the coming week we will be looking to see the news regarding Brexit negotiations which will be the key driver for this pair. If a deal is struck, it could mean that price retraces significantly, back towards 0.9000. However, if a deal is not agreed this will likely be negative for GBP, which could sustain bullish momentum. During the second scenario, we will then be looking to see whether a new higher high can be created when compared with the high from 11th Sept, at 0.9280. To do so price would need to also close above the descending weekly trend line that has halted previous bullish moves since March this year.
For the coming week we will be looking to see the news regarding Brexit negotiations which will be the key driver for this pair. If a deal is struck, it could mean that price retraces significantly, back towards 0.9000. However, if a deal is not agreed this will likely be negative for GBP, which could sustain bullish momentum. During the second scenario, we will then be looking to see whether a new higher high can be created when compared with the high from 11th Sept, at 0.9280. To do so price would need to also close above the descending weekly trend line that has halted previous bullish moves since March this year.