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Following the recent price action, the cross now shifted its attention to the area above the 0.8600 mark, noted Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

EUR/GBP has eroded the 6 month downtrend at .8497. The 61.8% retracement at .8380 has recently held 3 times and we suspect that the market might be basing from a longer term perspective. Attention reverts to the .8606/10 nearby resistance. A close above .8610 is needed to alleviate downside pressure and re-target the .8769 200 day ma.’

“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.”