EUR/GBP: the bias remains bullish due to Brexit agreement, which shouldn't be signed before December (Danske Bank)

In an analysis note published today, Danske Bank indicates that it has a short-term bullish opinion on the EUR/GBP pair:

"The EUR/GBP continues to gain ground, and given that a Brexit deal will not be reached before December at the earliest, we expect risks to remain bullish in the near term.

From a technical point of view, the resistance at 0.8920 (top on 1 October) was tested yesterday, but remains the first obstacle that can be identified.

With regard to the BoE meeting (Thursday), we do not expect the BoE to consider sending an additional hawkish signal to the market, although this remains a possibility given the sharp rise in wages."