EUR/GBP: Heading straight back up towards the 0.9000 mark – Commerzbank

Axel Rudolph, Senior FICC Technical Analyst, believes the EUR/GBP pair is set to test the 0.9000 psychological level.

Key quotes

“EUR/GBP’s daily chart close above the 0.8864/65 resistance area on Friday puts the March 20 low at 0.8994 and the psychological 0.9000 mark on the plate.”

“So far the 38.2% Fibonacci retracement of the March-to-April decline has been reached at 0.8988. A base has thus been formed and it should remain valid while the cross continues to trade above the April low at 0.8671.”

“Near-term support below the 55-day ma at 0.8847 lies at 0.8700.”