• EUR/GBP rallies to a two month high after breach of 0.85

• The move higher catalysed by a BoE rate cut and souring risk tone

• Cross now overbought - deviation with 100-hour MA surpasses April 22 peak

• Typically, this would signal pullback

• However, in light of the recent purge of consensus trades

• Record GBP longs can fuel a continuation of the move higher in EUR/GBP

• This adds caution to fading rallies in the cross

• In turn, the door remains open for a test of the 200-day MA at 0.8560

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