• Calmer start to week sees EUR/GBP continue to back away from 0.87

• Though dips are likely to meet solid demand into 0.8545-50 (200WMA)

• Position squaring stems from move into overbought territory (14D RSI)

• But pullbacks will likely set the stage for a large move higher

• In turn, the door remains open for a move to 0.88

• Euro is a bigger beneficiary of the sell America bias than GBP

• Meanwhile, incoming UK data is likely to garner attention for GBP
EURGBP weekly chart

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