EUR/GBP: A move below 0.8355 is needed to signal broader correction - Lloyds

Analysts from Lloyds Bank, point out that the EUR/GBP  pair would signal a broader correction if it drops below 0.8355.

Key Quotes:

“EURGBP continued its march higher yesterday, despite some intra-day studies indicating a pullback was due. The acceleration through 0.8415/25 resistance yielded a move up to 0.8627, before some consolidation overnight.”

“Momentum studies (which are now at extended levels) and price action symmetry through the rally suggest we may have made an intermediary high. A decline back through 0.8355 is needed to add conviction to the view that a broader correction is underway, and 0.8250 represents support below there.”

“Long term, aligned with the GBPUSD view above, we believe this move to the topside is the last within the correction from the 0.70/0.69 support region. Further upside would face key areas of resistance around 0.8700, followed by 0.9000.”