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Forex pairs in this Article » EUR/GBP (London) - EUR/GBP is trading back on the 0.8600 handle in the European session.

EUR/GBP is consolidated here after tumbling last week from the 0.8700 handle on the back of a unified BoE and some slight improvements sighted in the economy against a back drop of concerns in the Eurozone and in particular Portugal and Greece. The ECB has been somewhat clearer on future guidance as well and pressures from the idea of the US tapering their QE programme may require the ECB to revisit their own programme should there be the need of future bailouts yet again. All of these pressures combined have weakened the Euro in a period of low inflationary concerns and with rates expected to remain unchanged and low for a significant period to come.

EUR/GBP range

EUR/GBP had shifted down a gear or two last week in a major key and daily reversal from 0.8710 on Wednesday. Sterling is overall bid and the pair may be extended lower ahead of the three-month uptrend at 0.8510 as a key supporting area. The range broadly speaking could be extended as far as 0.8790/0.8814 to the upside if 0.870 is breached with closing sticks higher. This would mark highs achieved earlier on in the year. GBP/USD in an important factor here, and 1.5300 is in overbought territory. However, if the pair are going to continue to drift higher, technically, 1.5365 1.5395 are the next topside points that would mean EUR/GBP would be back on the 0.8500 handle again.
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