EUR/GBP likely to rangebound near term – Lloyds

In view of analysts at Lloyds Bank, the European cross could remain sidelined between 0.8330-0.8500 in the very near term.

Key Quotes

“EURGBP continues to respect its technical support and resistance levels. Having held the 0.8340/30 area, it subsequently moved higher yesterday, led by GBP’s post-BoE collapse”.

“The rally was capped at 0.8480-0.8500, with this region tested multiple times. This short term 0.8330 – 0.8500 range may remain intact today, as event risk is primarily USD related”.

“In the event that interim highs are broken, there is scope to gradually move towards spike highs at 0.8627. Should range lows give way then subsequent support levels are at 0.8305/00 and 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”.