EUR/GBP could base around 0.8810 – Commerzbank

According to intraday charts, the European cross should base near the 0.8800 handle, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP is just easing back from the short term downtrend at .8944. Last week we saw the market chart a strong rebound from major support band, namely the 200 day ma at .8762, the September low at .8746 and the 55 week ma at .8723. The move last week was fairly directional and we would allow for further upside probes this week, intraday charts suggest that the market should base circa .8810. Directly overhead lies the .8944 short term downtrend, 0.8962 the 55 day ma and the .9034 12th October 2017 high, where we suspect that it will struggle”.

“Below .8723 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”.

“Above .9026/34 sits the 61. 8% Fibonacci retracement at .9093 and the mid-August high at .9145”.