EUR/GBP: above 0.8500 could open doors to 0.8627 - Lloyds

Analysts from Lloyds Bank point out that technicals suggest a continuation of sideways trading in the EUR/GBP  pair.

Key Quotes:

“EURGBP briefly broke above its interim range high at 0.8450, printing a high of 0.8478, but has subsequently retreated. Short-term technical studies suggest that further sideways trading is most likely.”

“On the day, congestion and Fib resistance are at 0.8480-0.8500. A break here could initiate a gradual rally towards recent range highs at 0.8627. Intra-day, support should be found at 0.8420-0.8390, followed by 0.8360/40. Important Fib and congestion support lies below there at 0.8250/00.”

“Long term, in conjunction with the GBPUSD view above, we believe this move to the topside is the last within the correction from the 0.70-0.69 support region. Above 0.87, sees next resistance in the 0.90-0.92 region.”