EUR/GBP: Below 0.7750, Opens 0.7660/00 - Lloyds Bank
Analysts from Lloyds Bank expect the EUR/GBP pair to drop toward at 0.7660 - 0.7600 in the short-term, particularity if it breaks under 0.7750.
“We saw capitulation on Friday, with a sharp extension lower of the move from 0.81/0.82 key resistance. 0.7750 support is holding with intra-day studies suggesting a stronger bounce is possible today. However, a move back through 0.7855/0.7895 is needed to alleviate the bear pressure. A decline through 0.7750 opens the way to our current targets of 0.7660-0.7600.”
“Medium term, the trend from the 0.6935 lows set in July 2015 is starting to show signs of reversal. We are clearly through key daily trend supports, but we haven’t broken any major lows yet. A close through 0.7660 would be the first of these to watch for. Then our focus will be on weekly trend support at 0.7590.”