EUR/GBP: sells off to the 200 day moving average - Commerzbank

Karen Jones, Analyst at Commerzbank, provides a technical outlook for the EUR/GBP cross following its recent sharp reracement back to the very important 200-day SMA.

Key quotes:

“EUR/GBP has failed to clear an old Fibonacci retracement at 0.8925 and is on the defensive very near term. It has reacted back to the 200 day ma at .8832 and support is now exposed.”

“Only while above .8810 we would allow for a move to the .9034 October high to unfold. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements.”

“Below .8810 would retarget the .8697 recent low. 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.”