• EUR/GBP anchored below 0.8500 as rebound attempts continue to fade on approach to topside resistance

• Recent GBP outperformance leaves scope for upside extension more constrained in the near term

• Positive UK narrative largely in the price - incremental political impulse now diminishing

• Rates market remains skewed hawkish BoE with ~40bps priced by year-end

• Raises the bar for incoming data to validate further GBP strength (labour market, CPI due Tue/Wed)

• Initial resistance: 0.8520–22 (200H MAs), break would likely encourage dip buyers

• Support: 0.8455 (15 Jul low), then 0.8400
EURGBP hourly chart


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