EUR/GBP: riding the coattails of cable's 1.40 target rally

EUR/GBP is downside was opened up today and the taps are still flowing into the close of the US session as cable has a look in at the 1.40 handle with a fresh high for the session at 1.3990.

On the break of EUR/GBP's  200 DMA, its all clean fresh air on the way to 1.40 for the pound and with the DXY trading in the dumps of its recent range between 90.3620-90.6980, the cross can continue to trade on the coattails of this rally while EUR/USD chops in a sideways formation ahead of this weeks ECB. " Awaiting the ECB, where we see policy being left unchanged, but are watching for a potential hawkish tilt in language," explained analysts at ANZ.

EUR/GBP levels

While the cross's Bears have made some impressive ground, there is still some way to go until they reach the 61.8% retracement of the move seen this year at 0.8697. "A close below here targets the 0.8530/78.6% retracement of the move seen this year," argued analysts at Commerzbank. 0.8759 was the low of 14th Dec ahead of 0.8732 2017 1st Nov low. To the upside, a break of 0.8850 and 0.8894 are required ahead of the year high of 0.8903.