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EUR/GBP doors open for 0.7935 – Commerzbank

FXStreet (Edinburgh) - The recent price action in the cross would allow a test of the 0.7935 level, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“EUR/GBP still slides along the 55 day moving average at .7962, having fallen through the and the two month uptrend line at .7975”.

“Failure at yesterday’s .7953 low will push the .7935 August 13 low to the fore”.

“We still expect EUR/GBP to remain below the .8033/36 resistance zone, made up of the late June and current August highs”.

“A break above the .8033/36 area would introduce scope to challenge the .8074/82 38.2% Fibonacci retracement of the March-to-July decline and May low”.

“Such a rally should fail ahead of the .8136/59 50% retracement, February low and late May high at the very latest”.

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