EUR/GBP rallied higher after the Bank of England decision and on Friday hit the 200-day moving average (DMA) at 0.8585. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to reach the 0.8659/73 May highs.

Rally has reached the 200-DMA at 0.8585

“The 200-DMA at 0.8585 has so far held on a closing basis and we may see some near-term consolidation, but upside risks remain.”

“Above 0.8585, the pair will signal scope to revisit the 0.8659/73 highs since May. Above 0.8673 lies the 0.8722 April high.”

“Initial support is 0.8464. Below 0.8464 would negate upside pressure and allow for a retest of the 0.8402 October low.”