• U.S.-China tariff reset has aided EUR/GBP's descent to 0.8400

• The subsequent squeeze in USD shorts has seen EUR, CHF, JPY underperform

• With recent support at 0.8450/75 giving way, this opens the door to 0.8350

• As mentioned previously, upcoming UK-EU summit (May 19) should underpin GBP

• UK PM Starmer's rhetoric is geared towards seeking closer EU ties

• Bias likely to fade rebounds in the cross in lead up to summit

• Resistance = 0.8450/75 (prior support), 0.8490 (200-hour SMA/EMA)
EURGBP hourly chart

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