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GBP/USD edging lower affords EUR/GBP a modest rebound

On Friday the relative outperformance of the GBP/USD compared to that of the EUR/USD pushed the EUR/GBP down to fresh lows for the week. The EUR/GBP came very close to breaking below that 0.8500 handle once again. In the event it stopped short and later closed in the US at 0.8508, after setting a low at 0.8504. So far today it has not seriously threatened that 0.8500 level again, with the low seen set at 0.8505. It has since rebounded to above 0.8520 (o.8527 the high). That was just after the European stock markets reopened this morning. The major reason for the modest push higher comes as the GBP/USD now drifts back to session lows underneath 1.2825. As you can see, there is still pretty solid support in place at 0.8500 on the EUR/GBP. The question now; is will this eventually give way and if it does what further downside targets might come into play. Right now there is minor downside trend line support around 0.8455 and then nothing much north of 0.8400. Of course it has to bust below 0.8500 first, before we can get too excited about either of those. The nearest topside resistance levels to note are at 0.8545 and then at 0.8560, but they will shift over time. The EUR/GBP is currently trading at 0.8520 

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