EUR/GBP consolidates in recovery, sterling shorts appeal here

Currently, EUR/GBP is trading at 0.8438, down -0.22% on the day, having posted a daily high at 0.8463 and low at 0.8407.

With the Italian referendum done and dusted without any dramas and the market looking around elsewhere for alternative catalysts now, EUR/GBP consolidated the correction between 0.84 the figure and aforementioned highs near the 200 sma on the 1hr sticks at 0.8471. The euro has picked up the bid, recovering vs the greenback and sterling is slightly softer running into offers at 1.2774.

"GBP/USD shorts appeal on the grounds the level is attractive, though last week's CFTC positioning data aren't terribly encouraging - CFTC net positions have been short since November 2015, when GBP/USD was above 1.50, " explained Kit Juckes, economist at Societe Generale, adding, "The net short reached its biggest level just before sterling troughed and the reduction in positioning isn't very big yet."

EUR/GBP levels

Current price is 0.8439, with resistance ahead at 0.8443 (Weekly Classic PP), 0.8457 (Daily Open), 0.8463 (Daily High), 0.8474 (Hourly 200 SMA) and 0.8482 (Yesterday's High). Next support to the downside can be found at 0.8438 (Hourly 100 SMA), 0.8433 (Hourly 20 EMA), 0.8415 (Daily Classic PP), 0.8407 (Daily Low) and 0.8378 (Monthly Low).