Forex: EUR/GBP sidelined around 0.8555/60

FXstreet.com (Barcelona) - Increasing risk appetite coupled with an unfavorable print out of the US consumer confidence have boosted both the euro and the sterling, hovering over 1.3480 and 1.5760 against the greenback, respectively, thus keeping alive EURGBP in the mid 0.8500s

"EURGBP has reached the 61.8% retracement of the move down from 2011 - this is located at 0.8575. It remains capable of further gains to key resistance, which is regarded at 0.8621, the 2009-2013 downtrend. Should the rally extend to here, we look for this to hold and provoke failure", assessed Karen Jones, Head of FICC Technical Analysis at Commerzbank.

The pair is now losing 0.19% at 0.8556 with the next support at 0.8524 (low Jan.28) ahead of 0.8463 (low Jan.25) and then 0.8364 (low Jan.22).
On the flip side a break out of 0.8586 (high Jan.28) would aim for 0.8606 (Upper Bollinger) and then 0.8620 (high Nov.24).