EUR/GBP: capped on the bid on the 0.85 handle

Currently, EUR/GBP is trading at 0.8499, down -0.25% on the day, having posted a daily high at 0.8540 and low at 0.8489.

EUR/GBP is stable after a slight offer down to test below the 0.85 handle while sterling catched a bid in a minor recovery in an otherwise brader bullish tone and after GBPUSD tumbles to 2-month lows

The market is starting to price in a weaker euro and that is weighing on the outlook for the cross as we head towards full markets again in 2017. EU politics are the concerns for the bulls with speculation that the French elections are going to rock the euroland once again after the recent surge of populism, a Trump victory and Brexit.

EUR/GBP levels

Spot is presently trading at 0.8499, and next resistance can be seen at 0.8500 (Yesterday's Low), 0.8512 (Hourly 100 SMA), 0.8514 (Hourly 20 EMA), 0.8520 (Weekly High) and 0.8521 (Daily Classic PP). Support below can be found at 0.8499 (Daily Classic S1), 0.8489 (Daily Low), 0.8478 (Daily Classic S2), 0.8474 (Daily 20 SMA) and 0.8471 (Weekly Classic PP).