EUR/GBP: capped at Fibonacci resistance near 0.8925 - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the EUR/GBP cross had recently eroded the 5 month hurdle but the up-move, so far, has been capped at Fibonacci resistance near the 0.8925 region.

Key quotes:

“EUR/GBP has recently eroded the 5 month resistance line but is so far stalled at Fibonacci resistance at 0.8925.”

“We will assume an upside bias above the 200 day ma at .8817 for now and allow for a move to the .9034 October high. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% retracements.”

“It 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.”