EUR/GBP: Risks remain to the upside - Lloyds Bank

Analysts from Lloyds Bank point out that EUR/GBP  needs to break below 0.7875 to alleviate the current bullish momentum.

Key Quotes:

“Risks remain to the upside after breaking 0.7947 resistance. UK versus European bond spreads are breaking levels that support further gains in this cross-rate, but so far we are still holding resistance at 0.7990/0.80. A break is needed to open a move back to the 0.8117/0.8200 key long-term resistance.”

“Support lies in the 0.7875 region, a break of which is needed to alleviate the bullish momentum in the current move from 0.7550, opening a shift back to 0.7750/25.”

“Longer-term we have cited 0.8200 as a major resistance region. The move back through 0.7947 is worrying and risks a re-test of this key resistance region, with a break there exposing 0.8370/80 and 0.8700/20 above. A decline back through 0.7525/0.7450 is needed to confirm a decline towards 0.7200/0.7000 range lows from last year.”