Underperformance of EUR/USD could nudge EUR/GBP closer towards 0.86 – SocGen

Economists at Société Générale discuss GBP/USD and EUR/GBP outlook.

Hawkish 25 bps increase by the BoE and outlook for Fed pause should augur well for further GBP/USD upside 

“The rebound in the Dollar checked the advance of GBP/USD last week but the hawkish 25 bps increase by the BoE and outlook for Fed pause (tither spread) in theory should augur well for further upside in the coming weeks.”

“For EUR/GBP, the technical break below the 200-DMA and underperformance of EUR/USD could nudge the cross closer towards 0.86. The cross is in the process of trying to retrace the 1.6% intra-day gain of 15 December which coincided with the hawkish policy reset by the ECB.”