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Following the recent price action, the European cross has now shifted the focus to the 0.8380 region, noted Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

EUR/GBP has failed at the 20-day and 55–day ma at .8485/.8500. Attention is back on the 61.8% retracement at .8380, the market remains under overall pressure having recently failed at the .8610 resistance. Failure at .8380 will target .8318/78.6% retracement and the .8239 December low. This, together with the 55 quarter moving average at .8226, represents key support. The intraday Elliott wave count is conflicting, but for now we will look for failure.”

“Below .8226 remain the June and October 2012 highs as well as the April 2016 high and the January and February 2014 lows at .8167/18.”