EUR/GBP: Above 0.7750, target at 0.7950/70 - Lloyds Bank

Analysts from Lloyds Bank, as long as EUR/GBP remains above the key support 0.7800 - 0.7750, it is biased for a rise back toward 0.7950/70.

Key Quotes:

“Post BoE Governor Carney’s comments last Thursday the cross dropped through 0.7860 support, but we are holding 0.7845. A decline through here would open 0.7800-0.7750 key support below. While over this area we are biased for a grind back towards 0.7950/70.”

“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.”

“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 resistances.”