EUR/GBP bulls buying dips again

Currently, EUR/GBP is trading at 0.8578, up 0.14% on the day, having posted a daily high at 0.8636 and low at 0.8547.

EUR/GBP dropped back below the 0.86 handle as sterling gathers up some pace against the greenback again after an initial cap just shy of the 1.26 handle again. The euro has also been a performer vs the greenback as political tensions in the US and half the world's protest against Trump's recent executive orders seen as an attack on a particular religion by some is throwing a spanner in the works of the Trump reflation trade. There is an underbelly of concern in respect to the EU and elections in Holland and France this year and some renewed optimism for Brexit while Trump and May seemed to get along very well last Friday.

EUR/GBP levels

Analysts at Commerzbank explained that the focus has dropped to the base of the cloud at 0.8454. "Below here will trigger losses initially towards the 0.8417 200 day ma and this guards the 0.8304 December low." The analysts said that intraday rallies are indicated to be likely to struggle circa 0.8600. "Although the intraday Elliott counts are conflicting. The market has recently reversed from Fibo resistance and the top of the cloud at 0.8853, and the downside risk has increased. We assume that .8852/53 is a short-term top for the market."