EUR/GBP looks to be on a gradual trend higher – MUFG

Analysts at MUFG Bank see the pound with a negative perspective. They have a trade idea of a long position in EUR/GBP at 0.9090, with a target at 0.9360 and a stop loss at 0.8925. 

Key Quotes:

“EUR/GBP looks to be on a gradual trend higher since the start of May and we are now close to breaching the resistance trendline from the postCOVID high in March and the high toward the end of June. A breach of that resistance would open up a test of that June high of 0.9176.”

“It is certainly telling that EUR/GBP has been trending higher with levels over 0.9000 usually related to a risk-off period and hence we see this as the markets recognition of the worsening fundamental backdrop for the pound. This trade should therefore be a more reliable way to express our negative GBP view than versus USD.”