EUR/GBP: headed to 0.8852/68 January high?

Currently, EUR/GBP is trading at 0.8791, down -0.10% on the day, having posted a daily high at 0.8811 and low at 0.8773.

EUR/GBP was struggling recently post hawkish comments from BoE Chief Economist Haldane but it seems too premature to bid the pound due to the uncertainty about Brexit with more of a downward bias seen in place. 

EUR/GBP to stay below 0.8800 – ING

"A sustained period of GBP appreciation and the start of a new wave of bullish momentum seems unlikely from any small policy adjustment. Ultimately, we think the BoE’s medium-term policy rate path remains a function of Brexit more than anything else; this is the certainly view that Governor Carney adopted in his Mansion House speech and a cautious 2H17 rate hike is unlikely to be a GBP game-changer," explained Viraj Patel, Foreign Exchange Strategist at ING Bank.

EUR/GBP levels

EUR/GBP is starting to erode its near-term uptrend, explained analysts at Commerzbank, "EUR/GBP is starting to eroded the near-term uptrend at 0.8779. It remains capable of retesting the 0.8852/68 January high and recent high, however, we will need to close above here to confirm further upside potential to 0.8987/.9059, the 61.8% retracement and the highs from mid-October. The 0.8852 high, which is reinforced by the 0.8858 50% retracement of the move down from the 0.9403 spike high, and this is likely to prove tough to break."