British Pound: Remains under pressure below resistance against Euro – Societe Generale

Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has rebounded sharply after forming an interim low near 0.8450 in July, but the recovery has stalled around 0.8585. The pair is consolidating in a narrow range, with 0.8530 acting as short-term support and 0.8585/0.8610 as key resistance levels, while the 200-DMA near 0.8660/0.8690 caps the broader upside.

Recovery stalls near key levels

"EUR/GBP staged a sharp rebound after carving out an interim low near 0.8450 in July."

"The recovery has stalled near 0.8585, and the pair is now consolidating within a narrow range."

"A break above 0.8585 would confirm a broader recovery towards the graphical level of 0.8610 representing the low of May and perhaps even towards the 200-DMA at 0.8660/0.8690."

"The lower boundary of the recent range at 0.8530 may serve as a short-term support."

"EUR/GBP bid at 0.8575 after yesterday’s close above 50dma (0.8559). The July high of 0.8588 is next resistance."