EUR/GBP looks to be trading quite comfortably above April's spike high near 0.8735, ING's FX analyst Chris Turner notes.
"A move up to 0.88 is not guaranteed, however, since this week's eurozone data could weigh a little on the euro. At the same time, sitting long EUR/GBP in quiet August markets is again carry negative and a very light UK calendar this week looks unlikely to provide the incentives to add to short sterling positions. Perhaps EUR/GBP can trade something like a 0.8700-0.8770 range this week."
"GBP/USD looks more vulnerable. Here, we favour a retest of decent support at 1.3370, below which losses can accelerate – perhaps all the way to 1.3150 if the US data/FOMC event risk this week is dollar positive enough."