EUR/GBP: Ongoing rebound could persist towards 0.8720/0.8750 – SocGen

EUR/GBP rally extends to 0.8670. Economists at Société Générale analyze the pair’s technical outlook.

First support is at 0.8630

EUR/GBP briefly breached June low however the downward momentum is dissipating as highlighted by a quick bounce from the lower limit of a multi-month channel near 0.8500. This is also denoted by daily MACD which has been posting positive divergence. 

The pair has crossed above the 50-DMA; ongoing rebound could persist towards the upper limit of the channel near 0.8720/0.8750; this could be an important hurdle. 

First support is at 0.8630, the 23.6% retracement of recent bounce.