News: Looking Forward | May 2014 – Week 3

It was interesting to note the big sell off on both the EUR and the GBP this week against the dollar currency but looking forward it is clear to see that Sterling has much more underlying upside strength potential than EUR.

We are now aware that the European Central Bank are prepared to act if the Euro exchange rate gets too high so the forex market has a mental resistance level around the 1.4000. Sterling doesn’t have this barrier so if the overall strength of GBP continues (backed by further solid data out of the UK) then expect some nice technical short setups on the EUR/GBP pair over the coming weeks and months if the EURO fails to keep up with its British friend.