Danske Research sees EUR/GBP staying in range over the coming months. 

"We see EUR/GBP spot as trading in the 0.84-0.90 range over the coming months. With vol markets pricing about 2½ figures in a straddle from the current 0.86-level, our perceived range from spot appears well priced in the options market," Danske notes.

"Hence, a non-directional move in EUR/GBP could be on the cards over the coming months as there is quite a small case for divergence across ToT, the business cycle and CB policy. We thus suggest selling a 3M straddle to express this view amid elevated vol levels," Danske adds.