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In view of Axel Rudolph, analyst at Commerzbank, EUR/GBP continues to probe the .8980 78.6% Fibonacci retracement, but still hasn’t closed above here, which is pretty tough resistance and they are not convinced that the market is ready quite yet to resume its up move.

Key Quotes

“Favour the idea of some further consolidation near term – the daily RSI has diverged and we continue to doubt upside intent.”

“The .8980/94 level is regarded as the last defence for .9120 December 2018 high. While capped by .8980/94 we are unable to rule out a slide back to the 200 day ma at .8783 and then the March high at .8723, ahead of another leg higher.”