• Euro better bid vs GBP ahead of the 0.85 handle

• Trend higher remains intact but catalysts are lacking

• EU/GB 10yr spreads pause tightening ahead of Mar/Apr highs

• Explains partial consolidation in recent sessions

• However, with ECB on hold while risks rise for a more dovish BoE

• Room for ECB-BoE rate convergence favours EUR/GBP bulls

• Support at 0.8500 and 0.8460, resistance = 0.8550/75, B-band top (0.86)
EURGBP daily chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)