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EUR/GBP is flat on Tuesday morning as trades at 0.8980. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the pair lost steam ahead of the 55-day ma at 0.9051 and expects a drop towards the 0.8931 July low.

Key quotes

“EUR/GBP has failed near-term at the 55-day ma at 0.9051 and is starting to break down from its range. Above the market lies the 0.9134 resistance line and this guards the recent high at 0.9178. We would allow for a slide to 0.8931 the July low.”

“A move above 0.9184 (Fibo) would trigger a rise to 0.9308 the 2017 high and 0.9323. This is the location of the 78.6% Fibonacci retracement. This is formidable resistance and is expected to hold the initial test.”