The GBP/EUR touched the top side of its Ichimoku cloud on the daily candle chart last Monday, where it found resistance. On march 25th and 26th the daily chart shows the correction formed a double bottom. Today’s price action is trading above its resistance line, it will be interesting to see if it closes above it, in my opinion that could be the cue to further upward price movement. DMI and MACD indicators are both beginning to show signs of upward movement.
The Sterling has a much stronger economy than the Euro, unemployment in the UK is at 5.7% compared to 11.3% for the Euro area. GDP for the UK forecast by some at 3% this year after 2.8% growth in 2014, the Euro GDP on the other hand is languishing at 0.9% with a forecast for 2015 of 1.17% Add the effects of QE from the ECB and it doesn’t look like the Euro will be regaining ground against Sterling any time soon.