British Pound (GBP) Price Outlook: EUR/GBP Primed for Move Higher
GBP PRICE, NEWS AND ANALYSIS:
- GBP/USD continues to edge higher as the US Dollar slips back.
- Meanwhile, EUR/GBP looks ready for another upward move as a symmetrical triangle pattern on the charts suggests further gains ahead.
EUR/GBP WELL PLACED TO BREAK HIGHER
EUR/GBP looks ready to break higher as a symmetrical triangle continuation pattern on the charts suggests further gains for the pair – as long as the break from the pattern is to the upside. That break would likely lead to an extension of the advance that started on August 12.
EUR/GBP PRICE CHART, ONE HOUR TIMEFRAME (AUGUST 11-31, 2021)
Source: IG (You can click on it for a larger image)
With the cross trading around 0.8575 at the time of writing, a modest move above 0.8585 would likely start the new move higher, with the August 23 high at 0.8594 the immediate near-term target.
GBP/USD BENEFITING FROM USD WEAKNESS
In the meantime, GBP/USD continues the climb that began on August 20. Note, though, that this seems to be due largely to US Dollar weakness both before and after Fed Chair Jerome Powell’s dovish speech at the Jackson Hole symposium last week.
Here the first resistance level is the 1.38 round number, which has to be hurdled before any further gains for the pair.
Written by Martin Essex, Analyst DailyFX. 31 August 2021.
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