EUR/GBP: reverses the bid targetting the 0.8600 level

EUR/GBP has turned to the downside from 0.8693 recent highs on Sterling strength with cable penetrating the 1.30 handle ahead of EUR/GBP bulls being able t reach the key target of 0.8724 and 16th August peak.

The crosses have lead the way on a risk-on session in european trade and cable played catch up, rallying from below the halfway point on the 1.29 handle, penetrating the 200 sma on the 1hr sticks to the upside and the 200 sma on the downside in EUR/GBP at 0.8594. Fundamentals remain with Brexit fears and the ECB.

"On monetary policy, President Draghi stressed that the ECB will preserve “very substantial” monetary support but also called on national governments to act to help boost growth through economic reforms and looser fiscal policy if there is room. His comments will provide some reassurance that the ECB is likely to extend their QE programme beyond March of next year rather than tighten policy prematurely," explained Lee Hardman, analyst at BTMU.

EUR/GBP levels

"Key support short term support is 0.8549, the 3 month uptrend and while above here it is immediately bid. This is reinforced by the 55 day ma at .8499," explained analysts at commerzbank while to the upside, 0.8815 was the February 2013 peak. with a longer term upside target at the 0.9250 area.