Currently, EUR/GBP is trading at 0.8786, up 0.37% on the day, having posted a daily high at 0.8790 and low at 0.8745.
EUR/GBP is currently making small tracks to the upside as Sterling traders take profit at the start of the week. GBP/USD rallied at the end of last week on the back of poor US economic data cementing Yellen's concerns from her dovish testimony.
However, the minor recovery is not convincing with lower highs scored in a choppy drift and traders are nervous ahead of the ECB later this week. EUR/USD entered the US session -0.08% while the pound was also lower with full Brexit talks starting in Brussels today in a subdued European session following the Japanese holiday. So long as Sterling holds the 1.30 handle, with near term support sighted at 1.3030 and 1.3050, a buy on dips has been called analysts at Scotiabank while traders await key UK June inflation and retail sales data this week.
Analysts at Commerbank argued that EUR/GBP's near-term outlook comes with a negative bias: "EUR/GBP saw a false break higher last week and towards the end of week broke lower. The near term risk is that we will see losses to the 200 day ma at 0.8632. Dips lower are indicated to terminate here, however, given that last week's action constituted a key week reversal I suspect we may see further losses to the 55-week ma at 0.8613 and the 2015-2017 uptrend at 0.8549."
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