EUR/GBP finds initial support around 0.8790/83 – Commerzbank

The European cross could slip lower and find initial support in the 0.8790/83 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP last week saw initial rejection from the .9034 12th October 2017 high, and currently the market is on the defensive and grinding lower. The market is capable of sliding towards the bottom of the range again. Dips lower should find initial support .8790/83 ahead of the major support band, namely the September low at .8746 and the 55 week ma at .8721”.

“Above .9034 would target .9093 then .9187. Immediate support is offered by the previous downtrend at .8870”.

“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”.