EUR/GBP at fresh 1-month highs above 0.8600

EUR/GBP is back above 0.8600 and printed a fresh 1-month high at 0.8616, as it continues to approach to post-Brexit highs.

Will it be different?

For the third time during the day the pair is trading above 0.8600. The previous two were followed by a retreat that found support at 0.8575. From there the euro bounced a few hours ago and turned the upside. So far it broke above 0.8610 and still remains at daily highs.

Back in July, days after the Brexit referendum it climbed above 0.8600 but it failed to hold leading to a bearish correction. It the euro manages to hold on top it could open the doors to more gains.

“While market attention will be on the previous highs at 0.8627 set in early July we have more important and significant resistance above around 0.8710”, said analyst from Lloyds Bank. According to them a key short term support lies at 0.8530 and 0.8490. “A decline through these levels would suggest a lower high has developed as part of a broader range process between 0.8300 and 0.8627.”