EUR/GBP: Break below the 0.8864 June low to expose the 200-DMA at 0.8708 – Commerzbank

EUR/GBP is sliding towards the 55-day moving average at 0.8924 as the pair trades at 0.8953 after posting a daily low of 0.8945. If EUR/GBP losses the 0.8864 June daily low, the 200-day moving average at 0.8708 would be exposed, Commerzbank’s Axel Rudolph reports. 

Key quotes

“EUR/GBP’s slip off its 0.9178 June high has taken it close to the 55-day moving average and the June low at 0.8924/0.8864. This area we expect to underpin. Should this not be the case, the 200-day moving average at 0.8708 would be back in sight.” 

“A move above the 0.9178 June high would trigger a rise to 0.9323. It is the location of the 78.6% Fibonacciretracement.”