EURGBP: Broader bias for an eventual move back towards 0.90 – Lloyds Bank

Research Team at Lloyds Bank have a broader bias for an eventual move back towards 0.90 for EURGBP pair, but suggests that the pair needs to rally through key short-term resistance in the 0.8600/60 region to confirm.

Key Quotes

“The sharp reversal from 0.8572 last week leaves a question mark over whether 0.8308 was the low we are looking for over 0.8250 medium term support. On the day, a break of 0.8365 would re-open a test of key support. While over we look for a bounce back through 0.8450 area to re-open channel resistance at 0.8640.”

“A breakdown through the 0.8250 region would force us to review our medium term outlook for a range between there and 0.9000 and longer term a retest of the 0.9800 highs set back in 2008.”