EUR/GBP remains in a broad short-term range - Lloyds

According to analysts from Lloyds Bank, some technical indicators suggest that a correction in the EUR/GBP  pair from 0.8625 could be seen with a test of the 0.8150 - 0.7950 zone possible.

Key Quotes:

“EURGBP continues to trade in a broad short-term range. Yesterday, rallies were capped at 0.8380/85, but in the aftermath of reports suggesting MPC member Weale now favours monetary easing at next week’s BoE meeting, the pair tests important resistance at 0.8420/40.”

“Some technical indicators suggest a broader correction from the 0.8627 region could be seen, with a test of the 0.8150-0.7950 key medium term support region possible. But with GBP at risk of being on the back foot, a move through 0.8440 would suggest further sideways trading is more likely, if not a move back to new highs.”