EUR/GBP: sterling remains more robust as traders go for carry

Currently, EUR/GBP is trading at 0.8810, down -0.55% on the day, having posted a daily high at 0.8877 and low at 0.8802.

EUR/GBP has been consolidating the downside from the 0.8949 highs scored yesterday with the price action forming an hourly bearish H&S pattern with spot oscillating below the neckline at 0.8820. Fundamentally, there is nothing new here and it is down to an unwinding of the long EUR as traders search for yield and carry while sterling remains robust on short covering with BoE's McCafferty urging early QE unwind reported by The Times.

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EUR/GBP levels

EUR/GBP is testing a key support line here and has already bust 0.8815 for a test of 0.88 the figure. A break here opens prospects to the 0.8719 key 16th June low. Below there could generate further losses to the 0.8676/34 200 and 55 day moving averages. On the upside, 0.8987/0.9059, being the 61.8% retracement and the highs from mid-October 2016 are key levels.