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Forex pairs in this Article » EUR/GBP (New York) - The EUR/GBP has recovered off earlier lows that trade in the depths of 0.8469 during European trading.

EUR/GBP still stable above bullish support

According to the technical analyst team, The EUR/GBP is fluctuating around the 0.8500 region, but is still stable above the bullish intraday and short-term support at 0.8460, forcing us to hold on to our positive expectations targeting 0.8635 levels. Breaking 0.8460 will lead to testing key support level at 0.8350.

GBP facing headwinds?

“The balance of payments deficit and policy complications in the UK suggest that a lot can still go wrong. We believe that the balance of factors will lead to a modest GBP depreciation over the next year, whilst stale short positioning and a reigniting of credit channels and asset appreciation should remain important upside risks.” warns Stephen Gallo at BMO Capital Markets.

Briefing the technicals, the pair is operating at the 0.8485/90 level, or -0.30% in these moments. The EUR/GBP will look towards supports at 0.8490 followed by 0.8471, and finally 0.8444. Alternatively, a movement higher will usher in resistances at 0.8540, then 0.8571, and eventually 0.8590, calculates the analyst team.
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