The weakness of the euro, which is most evident against the dollar with near 12 year lows, is also having an impact on the cross-channel currency pair. At the time of writing, EUR/GBP is trading at 0.7134, extending its falls. If we look at the cross the other way around, GBP/EUR is trading above the very round number of 1.40. Brits and Europe GBP/EUR is a very relevant cross for an estimated 750,000 to 1 million Brits living in Spain. It is estimated that around 2 million UK citizens live in the “continent” as mainland Europe is often named by the English. Some of them are pensioners looking to enjoy retirement under the sun, and others just work, study or pass long periods of time in the old continent. In Spain, certain villages look like any town in the UK, apart from the sun of course. Everything is cheaper in Spain: property prices, public transport, food and beer are all sold at lower prices than in the UK. British owned businesses operate solely in Spain and cater to the needs of Brits who prefer a taste of home rather than the local specialties, which are remarkable to my personal taste. This 1.40 milestone in GBP/EUR, if it persists, could increase tourism and also property buying, especially in the sunnier and cheaper areas of the euro-zone. Spain, southern France, most of Italy and even Greece, once things stabilize, could certainly enjoy heightened activity by Her Majesty’s subjects. More GBP/EUR upside going forward The British pound has also suffered against the greenback, but the proportions are totally different. From a fundamental perspective, the UK is expected to raise rates later this year, like the Fed. And even if it happens long months after the expected US rate hike, it is still years before a move in the euro-zone. The ECB just began its ambitious bond buying scheme, which is set to run through September 2016. In addition, interest rates in the currency union will probably stay lower for even longer. Foreign exchange is never a one way street, and eventually a weaker euro will result in stronger local economies in Spain and other countries, eventually lifting the euro. Nevertheless, there seems to be quite a lot of room to run up for pound/euro. Is 1.50 the next target? Here is a monthly chart of GBP/EUR. Note that the cross is trading at the highest since December 2007, before Northern Rock crashed. Notable lines on the topside are 1.4237, which was support before the late 2007 fall. The peak of 1.53 in early 2007 is another noteworthy level. On the downside, significant support awaits at the very round number of 1.30. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next EUR/USD breaks low support – at lowest in nearly 12 Yohay Elam 8 years The weakness of the euro, which is most evident against the dollar with near 12 year lows, is also having an impact on the cross-channel currency pair. At the time of writing, EUR/GBP is trading at 0.7134, extending its falls. If we look at the cross the other way around, GBP/EUR is trading above the very round number of 1.40. Brits and Europe GBP/EUR is a very relevant cross for an estimated 750,000 to 1 million Brits living in Spain. It is estimated that around 2 million UK citizens live in the "continent" as mainland Europe is often named by… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.