The British Pound-Euro (GBPEUR) pair has been consolidating in its major triangle pattern since the referendum
on 23rd June 2016. A narrow majority (52%) of those voting supported leaving the European Union (EU) and the United
Kingdom is due to leave the EU on 29th March 2019 at 11 pm UK time. The recent failure to take out the downward
sloping trendline from the 1.2041 high indicates that the 2.5-year major triangle pattern is likely to persist. This pair is
currently testing the flat daily EMAs (on the right chart). Given the declining indicators, a break below the said EMAs may
take place in the short term, with supports seen at the 1.15-1.10 levels. Longer term, this pair could potentially continue to
compress within the downward sloping trendline from the 1.2041 high and the upward sloping trendline from the low of
1.0745 until a decisive breakout either up or down takes place. We will catch up again on this pair when GBPEUR stages
a decisive breakout.
on 23rd June 2016. A narrow majority (52%) of those voting supported leaving the European Union (EU) and the United
Kingdom is due to leave the EU on 29th March 2019 at 11 pm UK time. The recent failure to take out the downward
sloping trendline from the 1.2041 high indicates that the 2.5-year major triangle pattern is likely to persist. This pair is
currently testing the flat daily EMAs (on the right chart). Given the declining indicators, a break below the said EMAs may
take place in the short term, with supports seen at the 1.15-1.10 levels. Longer term, this pair could potentially continue to
compress within the downward sloping trendline from the 1.2041 high and the upward sloping trendline from the low of
1.0745 until a decisive breakout either up or down takes place. We will catch up again on this pair when GBPEUR stages
a decisive breakout.