EUR/GBP: Sell the rallies – Commerzbank

Karen Jones, Analyst at Commerzbank, notes that the EUR/GBP cross is likely to run into a strong resistance placed near an old Fibonacci retracement at 0.8925.

Key Quotes:

“EUR/GBP has recently failed to clear an old Fibonacci retracement at 0.8925 and also recovered off the 50% retracement at .8808. Currently, we remain unable to rule out a move to the .9034 October high, but this is looking increasingly unlikely. Below .8808 would retarget the .8697 recent low. No really strong bias.” 

“Key near-term resistance is the .9034 October 12, 2017, high. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements.“

“The cross recently sold off to the 61.8% retracement of the move seen this year at .8697. A close below here targets the .8530/78.6% retracement of the move seen this year.”