EUR/GBP could now target 0.9093 – Commerzbank

In light of the recent price action, the European cross could now head towards the 0.9093 level, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“EUR/GBP suddenly shot higher and nears its early October high at .9034. If bettered, we will have to allow for the 61.8% Fibonacci retracement at .9093 to be reached”.

“Support now comes in around the 38.2% Fibonacci retracement at .8961 and at the current October low at .8856. Directly below the support line at .8809 lies a major band of support which extends down from the .8747/43 July and September lows to the .8729 level. It contains the 200 day ma, 55 week ma, and the 2015-2017 uptrend”.

“Below .8729 would target the .8530/78.6% retracement of the move seen this year”.

“Above the mid-August high at .9145 would retarget the .9308 August high”.