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Forex pairs in this Article » EUR/GBP (Barcelona) - First, the EURGBP retraces its Asian session gains back to 0.8280 before rallying to the 0.8300 psychological level on the London session. A weakening British Pound aligned with a stronger EUR allowed further upside to the cross, going up to 0.8315 high.

Friday's industrial production data for November, -2.1% (YoY), underlines the poor state of the UK economy, according to Commerzbank analysts: "Since the beginning of the year the pound has lost ground on a trade weighted basis and given the cyclical slowdown in the UK and the general improvement in risk appetite amongst the majors this should lead to further sterling losses in the short term", wrote analyst Peter Kinsella, pointing to the 0.8345 target as possible.

"The market has been contained higher in a 6 month up channel", wrote Commerzbank analyst Karen Jones, pointing now to support at 0.8091 and resistance this week at 0.8355. "We suspect that the market will extend short term gains to the top of this channel at 0.8355 but stall here", she added.
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