In light of the ongoing sell off, the European cross could re-test the 0.8740 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“EUR/GBP has sold off sharply and continues to target the .8743 14th July low. Initial support is the .8813 50% retracement of the move up from May. Intraday rallies should now struggle .9065/90”.
“Initial supports ahead of here lie at .8930/.8813, these are the 38.2% and 50% retracements of the move up from April. Intraday rallies are indicated to hold below 8945/90”.
“Above .9145 would retarget the 93.08 recent high”.
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