Following the recent up move, the European cross could re-test the 0.9030 region, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“EUR/GBP has eroded the short term downtrend and the 55 day ma and in doing so we should see further strength to the .9034 12th October 2017 high, where we suspect that it will struggle. Above here would target .9093 then .9187”.
“Dips lower should find initial support .8790 ahead of major support band, namely the 200 day ma at .8771, the September low at .8746 and the 55 week ma at .8720”.
“Below .8720 would target the .8530/78.6% retracement of the move seen this year. Near term rallies should find decent resistance at .8840/80 (38.2% and 50% retracements of last leg down”.
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