Despite a potential move to 0.8700 and above, extra losses remain well on the cards in the European cross, noted Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

“EUR/GBP is consolidating sideways – the correction higher has proved to be very tepid indeed and the market remains on the defensive. There remains scope very near term for a move into the .8705/.8790 band (current intraday Elliott wave counts) ahead of further losses. Below .8571 we would allow for the slide to extend to the .8465 2019 low. We note the TD support at .8485. Initial resistance is .8786 the mid September low. Key resistance is the 55 day ma at .8853 and the October high at .9022. While capped here a negative bias is entrenched”.