EUR/GBP is likely to undergo a pause - SocGen

Analysts at Societe Generale, explain that since last year, EUR/GBP has remained confined within a pattern similar to a triangle, and recently it successfully defended the support at 0.8360/30.

Key Quotes

“It has led to a steady recovery, and the pair is now up against the upper limit at 0.8680/0.8710, which is also the 76.4% retracement from the March high. Holding below this level, EUR/GBP is likely to undergo a pause. 0.8450, the 61.8% retracement of the recent recovery, should cushion the decline. The graphical level of 0.88 remains a key medium-term hurdle.”