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Barclays: EURGBP Potential Bull Pattern

Strong demand for the euro against the British pound at the start of the European session.

Barclays expects the euro to trigger a potential bullish setup against the sterling.

Bullish sentiment for EUR/GBP dominates – the cross is consolidating above the 200DMA.
We anticipate the triggering of a bullish pattern for continuation of the long position to be traded this week.
Breakout zone in an upward direction at 0.8447 today.
Recent daily highs at 0.8453 and 0.8465 – local resistance zone.
Fourteen-day momentum confirms the rally from Friday.
The strategy being traded currently is “Buy on dips.”

Bank traders’ expectations for the quarter gravitate around 0.82 – 0.84.

In the case of a breakout, there is potential for the long to develop toward 0.86.

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