EUR/GBP: attention remains to the downside after 0.8871 failures - Commerzbank

Analysts at Commerzbank explained that EUR/GBP had bounced to and halted at the 55-day ma at 0.8871, near-term risks remain on the downside. 

Key Quotes:

"Attention remains on a major support band, namely the September low at 0.8746/33 and the 55-week ma at 0.8730. 

Risks are on the downside, but we suspect that the market is not yet ready to break lower. 

Below 0.8730 would target the 0.8530/78.6% retracement of the move seen this year. 

Near-term rallies should find decent resistance at 0.8840/80 (38.2% and 50% retracements of last leg down.

Where are we wrong? 

Key near-term resistance is the 0.9034 12th October 2017 high. This guards the 0.8838 August high. 

Short-Term Trend (1-3 weeks): Stabilised at the 55-week ma Long."