The pound slips after a loss of confidence in Britain’s government. The euro is still consolidating following a spike above 0.9200. A bounce off 0.8660 at the base of a rally in mid-September suggests a return of buyers after massive profit-taking. 0.8830 is a key hurdle ahead and the sideways action foreshadows an imminent breakout. Its breach could improve short-term sentiment. Then a break above 0.8970 may resume the uptrend in the weeks to come. A bearish breakout however, would deepen the correction towards 0.8500.
