EUR/GBP could slip back to the 0.8790 area – Commerzbank

The European cross could see its downside re-test the 0.8790 area, where sits the 200-day sma.

Key Quotes

“EUR/GBP is under pressure and looks set to extend near term losses to the 200 day ma at .8794. This guards major support band, namely the September low at .8746 and the 55 week ma at .8728”.

“Key near term resistance is the .9034 12th October 2017 high. Currently the market is effectively side lined, but looks set to sell off to the bottom of the range again”.

“Below .8728 would target the .8530/78.6% retracement of the move seen this year. Near term rallies should find decent resistance at .8840/80 (38.2% and 50% retracements of last leg down”.