The UK's GDP result on Thursday could see £-€ breakthrough a key resistance level..
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| GBP v EUR 1.1550 (mid-market rate) is the current key resistance level.
The Pound has touched the above rate twice now in the last week, but has failed to settle above it so far. The pair has also only seen two-days since September 2025 above this level, highlighting quite easily this is a clear resistance point.
In fact, £-€ has only spent 2-weeks above 1.1550 mid-market since July 2025.
Some data-houses are suggesting that the UK's GDP result for November 2025 (due this Thursday) could beat forecasts and if so, should breakthrough the key 1.1550 barrier.
Sometimes in this game, it's simply about marginal gains as black-swan events can occur at any moment that will see the rate you were edging towards and hoping for slip away in a blink of an eye.
For now, the post-budget momentum is still somewhat in play for the Pound and with focus remaining on the US/USD, investors and traders are still optimistic on the UK/£ (until more UK data arrives that is).
We reported last week on the investment bank UBS offering a pessimistic forecast for Sterling this year (£-€1.12 & £-$1.36). Today we report that Pantheon Macroeconomics (an independent economic research firm) forecast a much better environment for GBP in 2026; £-€1.17 & £-$1.37.
Much like UBS, Pantheon are a credible source for FX forecasting and concentrate on economics as their main scoring system, so worthy of your attention for future exchanges (but remember these are just forecasts and not fact so plan accordingly). |
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