EUR/GBP: Outside day to the downside puts support in the spotlight - Commerzbank

Karen Jones, Analyst at Commerzbank offers a technical picture for the EUR/GBP cross as investors await today's key release of the UK monthly retail sales data. 

Key quotes:

“EUR/GBP has recently failed to clear an old Fibonacci retracement at 0.8925 and is eroding the 50% retracement at .8808. It has eroded a minor support line and charted an outside day to the downside and we will assume downside pressure is building.”

“Currently we remain unable to rule out a move to the .9034 October high. A close below .8808 would retarget the .8697 recent low.”

“Key near term resistance is the .9034 October 12 2017 high. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements.”