We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • - How exposed are crude oil prices to weather-induced disruptions? - Flooding, high heat, climate change risks rattling key supply chain - Increased volatility in weather patterns may become a key concern Learn more here ⬇️ https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/11/How-Crude-Oil-Prices-React-to-Weather-Induced-Disruption-Fears.html?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @business: Will Justin Trudeau win a second term? Or will Conservative Andrew Scheer take power? Follow along with Canada's live electi…
  • RT @Reuters: First polls close in Canadian election that experts say is too close to call. The last polls to close, in British Columbia, wi…
  • RT @NAR: China further opens up financial sector. @tradewar @China https://t.co/ADl2BOvu6Z
  • The $CAD has bounced to test the bounds of a nearly two-year downtrend against the Japanese Yen. Sellers seem likely to regain the upper hand. Get your market update from @IlyaSpivak here: https://t.co/MCsruyOAx5 https://t.co/LIp6f0JPPL
  • #GBP/JPY pivot points (daily) – S3: 137.49, S2: 139.06, S1: 139.91, R1: 141.48, R2: 142.21, R3: 143.79 - https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Australia’s ANZ Roy Morgan Weekly Consumer Confidence Index (OCT 20) Actual:111.6 Est: N/A Previous: 110.9 #AUD
  • $USDCAD has continued its Q4 retreat, pushing down to fresh two-month-lows with the yearly-low now very nearby. Get your USD/CAD technical analysis from @JStanleyFX here: https://t.co/tNd9qQlB2k https://t.co/hRIzBLcXhs
  • Heads up: Australia’s ANZ Roy Morgan Weekly Consumer Confidence Index (OCT 20) is due at 22:30 GMT (15 min) Est: N/A Previous: 110.9 #AUD
  • RT @Reuters: Chile's Larrain says civil unrest will 'undoubtedly' have an impact on the economy https://t.co/GeYoPAR5dx https://t.co/UL9mkn…
Risk of Break Higher in EURGBP as Brexit Deadline Pushed to November

Risk of Break Higher in EURGBP as Brexit Deadline Pushed to November

2018-08-29 08:30:00
Martin Essex, MSTA, Analyst and Editor
Share:

EURGBP price, news and analysis:

  • The UK and the EU now aim to finalize Brexit divorce terms by the middle of November at the latest, rather than in October, according to Bloomberg.
  • That could strengthen EURGBP further once trendline resistance is broken.

Our trading forecasts for Q3 have been published; you can find the EUR and GBP guides here.

And check out the IG Client Sentiment data to help you trade profitably.

EURGBP may benefit from Brexit delay

A Bloomberg report that the EU and the UK have dropped their October deadline for a Brexit deal, pushing it forward to the middle of November, could strengthen EURGBP, with the Euro also potentially benefiting from remarks by Italian Finance Minister Giovanni Tria that Italy is not planning to breach the EU’s budget deficit limit.

GBP remains sensitive to Brexit news, tending to ease whenever the possibility increases of the UK leaving the EU next March without a deal. Meanwhile, EUR is arguably being held back by Italian debt concerns – which is why Tria’s comments, which contrast with earlier remarks by Deputy Prime Minister Luigi Di Maio, were seen as positive.

However, the pair is now close to trendline resistance, which needs to be broken for the advance in EURGBP to accelerate.

EURGBP Price Chart, Daily Timeframe (March 28 – August 29, 2018)

Latest EURGBP price chart.

Chart by IG

As the chart shows, EURGBP has been climbing since mid-April but for the advance to accelerate it needs to break conclusively through the trendline joining recent higher highs. Some weakness in the pair Wednesday could delay that – but it seems likely later.

More to read:

Brexit Latest: Kicking the Can or Sealing a Plan?

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.