• EUR/GBP stuck near recent lows, 0.8600-15 holding as a near-term floor

• Feeble topside attempts keep the path of least resistance low

• Middle East deterioration is a net EUR drag via oil bid - adds to headwinds for the cross

• However, feeble rebounds signals risks continue to lean lower

• Middle East headlines have taken a turn for the worse, supporting oil - EUR headwind

• UK local elections (May 7) is a risk, but a poor Labour result is the consensus view

• In turn, this likely limits the GBP hit

• If anything, risk skews asymmetrically toward Labour performing better than expected

• For dip buyers, a false break of 0.86 is needed to confirm selling exhaustion

• Resistance stands at 0.8670/0.8700
eurgbp daily chart


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