EUR/GBP looks like it may have found some support since the Euro started a strong down trend in January, after finally breaking a range it had been in since mid-September 2014. Daily chart beginning to show signs of over sold with DMI over 40 and candles being over 5% away from the Ichimoku cloud, Looking at the Monthly chart we see it’s currently on the bottom side of a downward sloping channel going back various years. My feeling this has room to retrace but that might be a good time to go short, QE in Euro will keep that currency depreciated to most others especially ones where there is no further QE on the horizon.
The euro can certainly push higher against gbp in short to medium term. we saw another up move today as markets look toward qe to solving some of the deflation problem in the eurozone. this was even with Germany’s PMI below forecast. As well we have lower costs because of falling oil — that will have to come thru eventually to help the economy.