FXstreet.com (Córdoba) - EUR/GBP tested yesterday levels below 0.9000 and fell to 0.8996 posting a fresh 3-week low. But Cable was rejected from there and the pair rose to 0.9070. Currently the pair trades at 0.9046/50, the same levels it had at the beginning of the day.

The pair continues to move away from the highest prices in six month posted last week at 0.9410. Since then it has fallen more than 300 pips. But is still supported by an upside trend line in daily charts.

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, affirms: Last week's 'bearish engulfing' candle with a 'spike high' at its top suggests that an immediate meltdown in the value of sterling has been postponed, and maybe averted for the rest of this year. On the upcoming months Elliot favors a random, fairly sharp swings, between 0.8600 and 0.9400.