EUR/GBP has continued higher after breaking out of its multi-month consolidation in October, setting an interim peak near 0.8820, Société Générale’s FX analysts note.
Support at 0.8740/0.8710 key for EUR/GBP trend
“EUR/GBP broke out above the upper boundary of its multi-month consolidation in October resulting in extension of the uptrend. It has established an interim high near 0.8820. A brief pause is taking shape; upper limit of previous range and the 50-day moving average at 0.8740/0.8710 could be an important support zone.”
“Defence of the moving average may lead to continuation in up move. Beyond 0.8820, the next projections are located at 0.8870/0.8910.”