This morning’s bounce has stuttered into some fairly solid resistance just above 0.8050 (0.8053 – 61.8% of yesterday’s downmove) and could look to slip back towards yesterday’s lows around 0.8012 as ongoing middle east cable buying weighs on the pair.

A UK bank was a major seller yesterday from 0.8080 and the cross could come under further pressure later with EUR/USD sales as a large expiry at 1.2500 (reportedly E1 bln) rolls off today, and if cable demand persists.

Yesterday’s EUR/GBP base was met with some solid bids from a US Investment bank, but the larger support is seen towards 0.7990/00