EUR/GBP could reach key resistance zone at 0.8700/0.8720 – SocGen

EUR/GBP clears 0.8630. Economists at Société Général analyze the pair’s technical outlook.

0.8560 should cushion downside

EUR/GBP defended the trough of July near 0.8500 on the second attempt resulting in a short-term bounce. It has crossed above a steep descending trend line drawn since September 2022. 

The break denotes possibility of continuation in up move towards August peak of 0.8670 and perhaps even towards the 200-DMA near 0.8700/0.8720; this is a key resistance zone. 

Low formed last week near 0.8560 should cushion downside.