EUR/GBP saw some volatile moves last week as prices swung from bearish to bullish as a result of Brexit news. After a gap lower at the start of the week, due to renewed deal optimism, prices continued to move lower and break the ascending 4H trend line that has been consistent since late-Nov. Prices fell back to the key inflexion and support zone of 0.9000, where they remained for Wed and Thurs. The support at 0.9000 was enough to rally prices, which pushed prices back up to 0.9050 on Friday.
For the coming week we will still 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, likely back past 0.9000. However, if a deal is not agreed this will likely be negative for GBP, which could sustain bullish momentum back up towards 0.9135. If Brexit news were not a factor here, as EUR/GBP managed to stay above 0.9000 this week and it continues its creation of higher highs and higher lows on a daily timeframe, we would have to lean towards a continuation of bullish trend in the near-term.
For the coming week we will still 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, likely back past 0.9000. However, if a deal is not agreed this will likely be negative for GBP, which could sustain bullish momentum back up towards 0.9135. If Brexit news were not a factor here, as EUR/GBP managed to stay above 0.9000 this week and it continues its creation of higher highs and higher lows on a daily timeframe, we would have to lean towards a continuation of bullish trend in the near-term.