In light of the recent performance, EUR/GBP is now expected to stabilize in the 0.8940 region, noted Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.
“EUR/GBP slid through the July and previous September lows at .8891/85 and is about to reach the 20 day moving average at .8841 around which it is expected to short-term stabilise. We thus turned medium-term bearish”.
“The 61.8% Fibonacci retracement of the May-to-August advance at .8794 is next in line”.
“Minor resistance above the .8891 July low and the .9016 September 9 high can be seen between the mid-July high and the 55 day moving average at .9052/54. Further resistance comes in at the .9149 current September high”.
“Still further up sits the August peak at .9327”.