EURGBP: Trapped in a range – Lloyds Bank

Research Team at Lloyds Bank, suggests that the EURGBP move into day 7 of being trapped in a range between 0.7860 and 0.7950 and a break through support would suggest a deeper decline towards the 0.7750 key support again.

Key Quotes

“While over 0.7860, the run from 0.7750 key support remains intact and suggests a move back to next resistance levels at 0.7970/75 and then 0.8035.

Longer-term we have cited 0.81-0.82 as a major resistance region and we are looking for evidence that 0.8117 was a top in this zone, for a move back towards 0.75-0.73. A breakdown through 0.7750 is a key component for this confirmation. Otherwise we are watching how the bounce is developing from there. A clear break up through the 0.8200 region negates our bias for a top, with 0.8370/80 and then 0.8700/20 the key resistance regions above.”