According to Karen Jones, analyst at Commerzbank, EUR/GBP cross continues to show signs of recovery off the base of the recent range and has again tested the 55 day ma, currently at .8644.

“A close above here would allow for a test of the recent high at .8723 and .8829 (200 day ma). It continues to hold the .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 .8411. The market is expected to struggle on rallies to the 200 day ma at .8830, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”