EUR/GBP could test 0.8860/34 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the European cross could extend the decline to the 0.8860/34 band, where it is expected to hold.

Key Quotes

“EUR/GBP’s sell off has almost reached the .8855 2 nd August low and 5 month uptrend. In this vicinity we find the .8860 50% retracement and the 200 day ma at .8834 and while there is scope for these to be tested, we look for them to hold and provoke recovery. Note that the .8855 55 week ma is also found here”.

“Above .9101, the recent high would target .9161 Fibonacci resistance and above here would introduce scope to the .9295 2009-2018 downtrend line”.