Background

The sequence of two down days ended aggressively yesterday. The Bank of England announcement was the catalyst for a renewal of sterling selling that took EURGBP back above the 13-day moving average with the strongest daily performance since Brexit. The scope of the move means intraday sentiment is again overbought but although an early reaction is expected, sentiment is positive.

Management and risk description

A move to .8509 means the stop can be raised to break even

Parameters

Entry: Buy in .8480/5 area and any dip to .8456.

Stop: .8427 offered.

Target: .8509 and .8529.

Time horizon: Intraday, ends 1300 GMT.