- This week we are looking for a sideways movement for EUR/GBP in the 0.85300-0.85600 range.
- This morning's SNB news sent EURCHF to 0.97828.
EURGBP chart analysis
This week we are looking for a sideways movement for EUR/GBP in the 0.85300-0.85600 range. This morning, at the beginning of the EU session, the pair fell to the support level at 0.85300. Then, in the next hour, we went back up, and we are now one step away from the 0.85600 level. The pressure is on the upper level at the moment when we expect news from the Bank of England on interest rates.
Expectations are that the interest rate will remain at the same level as before, and such news could lead to a decline in the pound and push the euro against the pound to higher levels. Possible higher targets are 0.85650 and 0.85700 levels. We need negative consolidation and a shift to the downside to get a bearish option. First, we need to get back to the middle of this range at the 0.85450 level. Here, we test the EMA200 moving average. By falling below that, we are moving towards a bearish option and will look to pull back to the bottom line of this week's range.
Chart analysis of the euro against the Swiss franc
This morning's SNB news sent EURCHF to 0.97828. The Swiss Central Bank announced that it will cut the interest rate from 1.75% to 1.50%, weakening the Swiss currency. The Euro immediately benefited from this, and we saw a jump from 0.96800 to a new yearly high. After that, the pair makes a short pullback to 0.97400 and we are holding in that area for now. It could easily happen that we see new bullish momentum and continue further recovery.
Possible higher targets are 0.97800 and 0.98000 levels. We need a negative consolidation and a drop to 0.97200 level for a bearish option first. This is where the EURCHF will show that it is under pressure and that we will see further decline. Possible lower targets are 0.97000 and 0.96800 levels.
