EURGBP is up over 140 pips since the Carney cut

We're up at some fairly strong resistance in EURGBP after the Carney jump. 0.8485/90 has been an S&R point since the Brexit vote.

EURGBP H4 chart

This topside resistance is likely to be keeping the fire lit under cable, as some of our astute readership have already noted.

Despite the negative factors for the pound, the last trip above 0.8500 proved fleeting and that might well be the case once again. A break of 0.8500 might be the trigger for cable to dip under 1.31, or it might be cable dropping through 1.31 that kicks EURGBP up. Either way there's two levels that are going to have an effect on both pairs.

Shorts might want to lean against the 0.8500 area but they should keep it fairly tight. Based on the PA right now, the pair isn't showing any signs of giving up trying to take it out. If we do fail up here, the support may not be overly strong until the lower part of 0.8400.