A break beyond 0.8650 would be crucial to confirm further uptrend, SG FX strategists note.

A break above 0.8650 to confirm further uptrend

“EUR/GBP defended the lower limit of a multi-month channel near 0.8395/0.8380 resulting in a sharp rebound. It recently crossed above the 200-DMA and the upper band. The pair is now in vicinity to potential hurdle of 0.8620/0.8650 representing peaks of April / May.”

“A brief pullback can’t be ruled out. It would be interesting to see if the pair can defend the channel band near 0.8550, failure would mean possibility of deeper down move. A break beyond 0.8650 would be crucial to confirm further uptrend.”