• Drift higher in EUR/GBP persists with the 55WMA (0.8458) giving way

• Headwinds remain for GBP as UK rates continue to dovishly reprice

• Markets see 62bps of easing, up from 41bps at the start of last week

• In turn, a test of 0.85 is still in sight for EUR/GBP bulls

• That said, significant gains above 0.85 may be harder to come by

• Resistance at 0.8558 (200WMA) is likely to cap

• Meanwhile, EUR is more exposed U.S. tariffs than GBP
eurgbp weekly chart

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