Danske Research discusses GBP outlook and maintains a bullish bias in the medium-term.
"EUR/GBP has increased close to 0.87 since our last update after it briefly went below 0.85. We think this is a bump in the road and remain bullish on GBP, as we are still more upbeat on the UK than on the euro area. It is noteworthy that some of the recent increases is due to a stronger EUR, as also EUR/USD has moved higher," Danske notes.
"Near-term we expect EUR/GBP to trade around the current levels before the cross starts to move lower again. We still forecast EUR/GBP will trade in 0.83 in 12M," Danske adds.