EUR/GBP: Break above 0.86 to clear the path towards the 0.8735 mark – SocGen

EUR/GBP defended downside projections near 0.8460/0.8450 resulting in an initial bounce. Erosion of the 0.8600 level could lead to an attack of the 0.8735 mark, economists at Société Générale report.

Consolidation above 0.8540 crucial for persistence in bounce 

“EUR/GBP has established itself above short-term moving averages which denotes the possibility of further upside.”

“A cross above recent peak near 0.8600 can result in a steady rebound towards July peak of 0.8675 and even towards 0.8735.”

“Consolidation above the 50-DMA at 0.8540 would be crucial for persistence in bounce.”