As we head into the election season in the UK, the GBP has felt some jitters in a lot of cross rates recently. However, one currency that is trading firmer than the GBP surprisingly is the EUR.

As you can see in the weekly chart below, we had overshot a 161% extension to just around .7000 pence, then have bounced. The daily chart (not shown) have taken out a downtrend line and the pair looks set to recover back towards .7500 or above.

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer, I have been building a long EUR/GBP trade as noted here.