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EUR/GBP to hold the sideways trading pattern – KBC

FXStreet (Barcelona) - The KBC Bank Research Team maintains a neutral/ wait-and-see bias on EUR/GBP.

Key Quotes

“Recently, we advocated to protect EUR/GBP shorts against a temporary countermove and were in no hurry to reinstall EUR/GBP shorts.”

“On Thursday, we got a first sign that the EUR/GBP rally was running out of steam. However, the picture for sterling remains fragile as cable remains in the defensive. We look how the EUR/GBP 0.74 resistance fares.”

“Any decline in EUR/GBP will probably be due to euro weakness rather than a sustained rebound of sterling. For now we keep a neutral/wait-and-see bias on EUR/GBP and look for confirmation that the rebound as run its course.”

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