Forex: EUR/GBP calm around 0.8620

The British Pound experienced higher demand between 12h and 13h GMT, pushing the EUR/GBP lower to 0.8605. The cross was already down on the day since London morning's 40-pip drop from 0.8660 after ECB's LTRO repayments report.

The ECB informed that the next LTRO repayment would be about half of what was expected: €61.1 billion instead of €122.5 billion. The EUR/GBP is now trading under a narrow range around 0.8620 (-0.30%).

“EUR/GBP has moved above its resistance at 0.8717 but has failed to close, on a daily basis, above it. Given the general overbought conditions, short-term caution is required”, wrote MIG Bank analyst Bijoy Kar, pointing to hourly support at 0.8572 (13/02/2013 low).