The pound remains strong against the dollar while the euro fell close to %1.7 since the start of August. Euro is getting weaker against the pound due to looser monetary policy and lower growth. But this look may change for the short to medium term as Euro Recovery Funds is now starting to flow. It may not have the size of the US fiscal stimulus but still, it may get the Eurozone the boost it needs.
EURGBP is testing the 0.8444 support and may reverse to the short-term trend channel’s upper line, 0.8585. But the move can be much steeper than before and with a possible break, the road to the white trend line may open in the near future.
Below the 0.8444 however, bearish pressures may resume for a little while longer.
