Pound Euro Exchange Rate: GBP/EUR Breaks 1.2000 3rd in October 2013, Forecast Could go Higher

Modified: Thursday, 28 November 2013 12:34 BST - Written by David Woodsmith

STORY LINK Pound Euro Exchange Rate: GBP/EUR Breaks 1.2000 3rd in October 2013, Forecast Could go Higher

The Pound euro exchange rate (GBP/EUR) made a concerted run at its 10 ½ month high during yesterday’s trading day, breaking to an intraday peak of 1.2004 during the middle part of the European equities session.

The pair’s failure to break through its existing near-term high of 1.2048 sounded a bearish signal, but the negative sentiment towards the pair may prove to be short-lived. GBP EUR has hit the 1.2000 threshold on three distinct occasions since the start of October before retracing back into the 1.1900s again prior to yesterday’s brief incursion above the psychologically key level. This price action suggests that a strong band of technical resistance exists just above the 1.2000 rate, meaning that any time the pair pops its head above this level, speculators rush to ‘take profit’, sending GBP EUR lower again.

Today Could See Market-Movement for GBP EUR Exchange Rate

At some stage soon all of the Sterling sellers will be flushed out of the GBP EUR market, and the pair will be free to trade up into the 1.2000s. Today could mark that day, particularly if this morning’s German unemployment data disappoints. Expectations are low for the Teutonic labour market number, with economists anticipating that the closely-watched release will reveal that there was no alteration in the overall level of German joblessness last month. With November’s whole of eurozone Consumer Confidence survey penned in for release at 1000hrs GMT and German Consumer Price Index figures set for publication at 1300hrs GMT, today could well prove to be a market-moving one for GBP EUR.

Elsewhere, yesterday’s session saw several leading global currency pairs break to significant highs with GBP CAD touching 1.7277, GBP AUD breaking to 1.7982 and GBP NZD hitting 2.0066. Further upside van not be ruled out for these pairs in the short term, but investors would do well to bear in mind that over 90% of the $5.2 trillion exchanged on a daily basis in the global currency markets is put forward by speculators, meaning that a technical retracement could be on its way for all of the above pairs during today’s trading session.

Important Pound Sterling/ Euro Exchange Rates Today (28/11/2013 11:00 GMT)

The British Pound to Euro exchange rate is trading up +0.23% at 1.20242 GBP/EUR.
The Euro to British Pound exchange rate is trading down -0.22% at 0.83166 EUR/GBP.
The US Dollar to Euro exchange rate is trading down -0.14% at 0.73573 USD/EUR.
The Euro to US Dollar exchange rate is trading up +0.14% at 1.35920 EUR/USD.

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