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EUR/GBP has dropped back below 0.87. Economists at Société Générale analyze the pair’s outlook.

Rebound towards 0.8725 and recent peak of 0.8770 on the cards

0.8675, the 61.8% retracement from October is an important support.

A rebound can’t be ruled out towards 0.8725 and the recent peak of 0.8770. 

In case the pair fails to defend 0.8675, there could be risk of a deeper down move towards the low formed earlier this month near 0.8650 and 0.8610.

See – EUR/GBP: More downside room – ING

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