Karen Jones, analyst at Commerzbank, points out that EUR/GBP recovered yesterday and given that there is again divergence seen of the daily RSI, they suspect that we will see a bounce higher still this week.

“Initial resistance is last week’s high at .8606 and above here lies a minor downtrend channel resistance line at .8620 ahead of the four month downtrend line at .8752. Overhead resistance is reinforced by .8786 the mid-September low. Support is offered by last week’s low at .8498. Below here lies the May low at .8465. We note the TD support at .8440 and we look for the market to hold here.”