EUR/GBP: Further upside potential above 0.862
The Euro was the best performer on Wednesday, buoyed by Draghi’s suggestion that the ECB would not start working down its stimulus effort anytime soon. At 0.8651 at the moment of writing, the bears are pushing the EUR/GBP down, but the pair remains in a firm uptrend since the beginning of the year and as long as key support level at 0.8466 is intact, there is further upside potential. Once the 0.8705 level is cleared, we could expect a re-test of the 0.8765 area. Near term support sits at 0.8573. Any pullback in that vicinity could be seen as a good buying opportunity. Traders have a lot to absorb today on the economic data front with the EU and German consumer price releases highlighting the calendar during European hours and the Chicago PMI later in the afternoon among the most notable releases from across the Atlantic.
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