The European cross has now shifted its focus to the 0.8700 neighbourhood in light of the recent performance, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“EUR/GBP has eroded the 2017-2018 support line at .8767 which leaves attention still on the 8700/.8697 June low. Failure here would target the .8620 2018 low. The sell-off has so far reached .8723, the 78.6% retracement and we are seeing a small rebound here – we will attempt to sell the rallies”.
“Rallies will find initial resistance at .8836 200 day ma ahead of .8923 the 55 day ma and will now stay offered below here”.