EUR/GBP: Outside day to the downside somewhat neutralises the outlook - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that any near-term rallies in the EUR/GBP cross should find decent resistance at .8870 55 day ma and then the .8918 resistance line.

Key quotes:

“EUR/GBP has recovered this week following failure to register a weekly close below its 55 week ma. But yesterday charted an outside day to the downside suggesting upside momentum has dissipated.”

“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.”

“Key near term resistance is the .9034 12th October 2017 high. This guards the .9308 August high.”