EUR/GBP nears the 0.8600 level. Economists at Société Générale analyze the pair’s technical outlook.

Last week low of 0.8530 is near-term support

EUR/GBP recently defended the low of last August near 0.8490 and evolved within a small base. It has crossed above the upper limit denoting potential upside. The move has so far remained contained near 200-DMA at 0.8610 which is also a multi month trend line. 

Daily MACD has entered positive territory first time since January highlighting regain of upward momentum. 

Once the pair establishes above 0.8610, the up move is likely to extend. In such a scenario, next objective could be located at 0.8665, the 61.8% retracement from November 2023.