EUR/GBP: consolidating upside post NFP and BoE

EUR/GBP has been a drift to the upside within a narrow range since last week on the back of the US jobs data and a stronger dollar vs both the euro and sterling.

US jobs: Steady as she goes after a brief wobble - SocGen

While both the ECB and BoE come with an easing bias, The Fed is looking for opportunities in the US economy to try and normalise monetary policy and on that basis the dollar has accelerated gains vs both the pound and the single currency. However, the BoE has taken proactive measures in a preemptive attempts to protect the UK economy after the Brexit vote and thi has enabled the euro to recover from July lows vs the pound in a bull trend from below 0.8240 on to the 0.85 handle.

EUR/GBP levels

Spot is presently trading at 0.8496, and next resistance can be seen at 0.8503 (Daily Classic R1), 0.8505 (Yesterday's High), 0.8512 (Daily High), 0.8525 (Daily Classic R2) and 0.8529 (Monthly High). Support below can be found at 0.8491 (Weekly High), 0.8488 (Hourly 20 EMA), 0.8484 (Daily Classic PP), 0.8474 (Daily Open) and 0.8469 (Daily Low). Regarding candlestick formations, we can see Dark Cloud Cover formation on the 4-hour . "For now, we would allow for some consolidation," explained analysts at Commerzbank. "An upside bias is maintained above .8228/.8110. Longer term the market remains on course for the .8815 February 2013 peak."