EUR/GBP attempting a minor recovery through 0.8450 key resistance

Currently, EUR/GBP is trading at 0.8451, down -0.26% on the day, having posted a daily high at 0.8490 and low at 0.8434.

• France: Macron is the ultimate winner - BBH

EUR/GBP has been confined to a narrow range, but making recovery attempts after the Macron "sell the fact" trade and sterling's brutal strength of late that may have reached a limit, for the time being at least as noted b analysts at Scotiabank earlier today at the open. 

• GBP/USD is toppy, headed back to 1.2900? - Scotiabank

EUR/GBP has made a significant reversal this month so far from the 28th April rally to the 0.85 handle that was very short-lived while GBP/USD has made fresh highs and new attempts at the 1.30 handle with a double top in the 1.2980's so far. EUR/USD is suffering in the divergence between the ECB and Fed, although June and Jule could be interesting months for the pair considering the Macron win and the potential for the ECB to start signalling that they could start to taper in due course. Indeed, much of the price action will also depend on the sentiment for how the Brexit negotiations are turning out.

EUR/GBP levels

Analysts at Commerzbank suggest that EUR/GBP’s near term outlook is neutral to negative: "EUR/GBP remains subdued, trading below the 55- and 200-day moving averages at 0.8550/97, which is reinforced by the seven-month resistance line at 0.8584.It is grinding higher and remains capable of testing these resistances, but is expected to fail."

The analysts at went on to argue that while that level caps, a retest of key support at 0.8334/04 may be seen. "If slipped through, the .8252 the July 2016 low would be in focus. Where are we wrong? A negative bias is now entrenched below the .55 and 200-day ma. Should a rise above the 2016-17 resistance line at .8590 be seen we would have to re-evaluate our forecast."