Economists at Société Générale analyze EUR/GBP technical outlook.
Defence of 0.8570 is crucial for persistence in up-move
EUR/GBP has broken off the December lows but has not regained the downward momentum. It found support near 0.8520 leading to a quick rebound.
The pair is now challenging the previous ascending trend line near 0.8660. If this hurdle is overcome, the bounce is likely to extend toward the 200-DMA near 0.8720/0.8750.
Defence of 0.8570, the 61.8% retracement of the recent rebound is crucial for persistence in up-move.
