Karen Jones, analyst at Commerzbank, points out that the EUR/GBP cross has continued to consolidate at the 55 day ma, currently at 0.8641 and is somewhat stuck at this zone.

“A close above here would allow for a test of the recent high at 0.8723 and 0.8825 (200 day ma). It continues to hold the 0.8471 recent low and we suspect might be trying to base near term. Currently though we remain unable to rule out the risk of a slide to the 200 week ma at 0.8419 (although this is less favoured). The market is expected to struggle on rallies to the 200 day ma at 0.8825, and only above here allows for a move to the October 0.8941 high.”