EUR/GBP: continues its ascent and targets the .8983/.9034 area - Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, offers a near-term technical outlook for the EUR/GBP cross as investors await the release of flash Euro-zone CPI print. 

Key quotes:

“EUR/GBP not only eroded the six month resistance line at .8843 but has also briefly risen above Fibonacci resistance at .8925.”

“We will assume an upside bias above the 200 day ma at .8821 and 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.”

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

“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.”