In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the European cross could slip back towards the 0.8555/25 band.
“EUR/GBP has recently eroded its 7 month downtrend and the market is probing the 200 day ma at .8597, but not yet managed to clear this level. Risks have shifted higher and above here we have little resistance until the top of the 2017 channel at .8714. We note the 13 count on the 60 minute chart and would allow for a small dips back to .8555/25 ahead of further gains”.
“A break below the 0.8383 recent low will retarget key support at .8334/04. If slipped through, the .8252 the July 2016 low would be in focus”.