As the world’s leading investment manager, I bring you the latest insights from SG FX strategists on the EUR/GBP pair. After defending the lower limit of a multi-month channel near 0.8395/0.8380, the pair has seen a sharp rebound. Crossing above the 200-DMA and upper band, EUR/GBP is now approaching a potential hurdle at 0.8620/0.8650, representing peaks from April and May.
While a brief pullback may occur, all eyes are on whether the pair can hold above the channel band near 0.8550. Failure to do so could lead to a deeper downward move. However, a break beyond 0.8650 would be crucial to confirm a further uptrend.
Analysis:
- EUR/GBP defended lower channel limit near 0.8395/0.8380
- Sharp rebound seen, crossing above 200-DMA and upper band
- Approaching potential hurdle at 0.8620/0.8650
- Key level to watch is 0.8550 for channel band defense
- Break above 0.8650 needed to confirm uptrend