Forex Flash: EUR/GBP buy on dips – Danske Bank

FXstreet.com (Barcelona) - The cross is hovering over the mid 0.85s on Monday, as sentiment surrounding the single currency remains subdue on jitters stemming from Cyprus.
The renewed euro weakness is contrasting with some sort of resilience from the sterling, which is trading firmly above 1.51 against the greenback.

“Overbought readings have prompted a period of consolidation but trend momentum remains strong and further dips are expected to attract fresh buyers in the 0.8576/30 area… The move higher should resume in due course, and clearance of the 0.8831/86 barrier will open the 2011 peak (1 July) at 0.9084 next”, recommended A.Lohman Rasmussen, Chief Analyst at Danske Bank.