EUR/GBP to stop its decline at the 0.8505/00 mid-July lows – Commerzbank

EUR/GBP has sold off to the mid-July lows at 0.8505/00. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to stabilize at this point.

Above this week's high at 0.8565 lies resistance at 0.8615/20

“EUR/GBP failed at the 20-day ma at 0.8562 and sold off to initial support offered at the 0.8505/00 support, the lows from mid-July. This is currently indicated to be the end of wave 4 and we will cautiously start to cover our short positions as we are concerned that we will just see more ranging.”

“Below 0.8505/00 lies key support is .8471/49, the recent low and lows since 2019.” 

“Above this week's high at 0.8565 lies resistance at 0.8615/20.”