GBP/EUR Set for Grind Lower as Budget Nerves Build
The Pound to Euro exchange rate is expected to grind lower in the coming week due to budget nerves building up and a hot eurozone inflation print on Friday.
According to analysts, the pound has slipped beneath its 21-day and 100-day moving averages, which are considered bearish signals for the days ahead.
The 100-day moving average, which points higher since the spring, caught the pullbacks of August and early September, but Thursday's close beneath it marks a change in behavior.
The 21-day moving average has fallen since mid-July and is closing in on the 100-day from above, indicating that the market has lost momentum on both short-term and broader trends.
The first obvious target for the pound to euro exchange rate is 1.1600, a graphical horizontal level that capped the market from March through June before the July breakout turned it into support.