Interactive Investor

Pound vs euro: What's next for this pairing?

26th April 2018 09:50

by Alistair Strang from Trends and Targets

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Pound vs euro (FX:GBPEUR)

The battle of the chocolate coins continues with little sign of resolution. Though we do have a pointer of some resolution, despite the pairing effectively spending the last six months messing around aimlessly.

As can be assumed, as we approach "that time of the year" when people are planning holidays or whatever if an effort to escape our miserable climate, we've started to receive emails asking our opinion on this currency pairing. At present, we're completely underwhelmed as aside from a brief blip upward, there's not a lot happening.

However...

Back at the start of March, we did express an opinion should this relationship better €1.14, we expected some movement toward €1.179. Nothing has occurred to change this potential but it's surely moving at a glacial pace. In the event €1.16 is exceeded anytime soon, things should speed up quite nicely. About the only thing worthy of comment is the pairing now needs below €1.125 to scupper the potential of €1.179 making an appearance.

Better still, should €1.179 make an appearance before the next ice age and perhaps be bettered, we're calculating a secondary at €1.214.

What happens if €1.125 is broken?

Some relaxation to an initial €1.097 can be planned for. Secondary, if broken, looks like €1.077 and another bounce. But for now, we've little choice but to think of this as heading to

€1.179, just very, very, slowly.

Source: interactive investor          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, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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