Sterling Especially Strong Against the Euro

Sterling is on steroids right now. Carney’s comments late Thursday have resonated with the market with a continuation higher against all currencies. But the GBP strength is not anymore pronounced than it is against the euro with the $EURGBP at levels not seen in almost a year.

EURGBP WEEKLY CHART

This full on breakout is approaching a major zone that has acted as both support and resistance with this currency pair. With Carney and Draghi engaging down very different monetary policy roads remarks, the $EURGBP has the sweet advantage of price movement based on double whammy fundamentals. These are the sweet confluences that long-term trends are made of. It is also a good reason to watch the rhetoric because any change in tone from either Draghi or Carney can stop this current bear run dead in its tracks. But until then, expect this zone around 0.7950 to determine direction in the trading sessions ahead.

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