EUR/GBP: Bounce to extend on a break past 0.8660 – SocGen

Economists at Société Générale analyze EUR/GBP technical outlook.

Defence of 0.8570 is crucial for persistence in up-move

EUR/GBP gave a break below December low however the downward momentum hasn’t regained. It has found support near 0.8520 resulting in a swift rebound. 

The pair is now challenging the previous ascending trend line near 0.8660. If this hurdle is overcome, the bounce is likely to extend toward the 200-DMA near 0.8720/0.8750. 

Defence of 0.8570, the 61.8% retracement of the recent rebound is crucial for persistence in up-move.