EUR/GBP to extend its race higher towards the 200-DMA at 0.8648 – Commerzbank

EUR/GBP has eroded the 7th September high at 0.8615 and rallied into six-week highs. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to challenge the 0.8648 200-day moving average (DMA) and the July high of 0.8671. 

Massive rally approaching the 200-DMA at 0.8648

“EUR/GBP is poised to test the 200-day ma at 0.8648 and 0.8671, the July 2021 high. Above here lies the 0.8722 April high. It looks like it is attempting to base longer term but we would like to see a weekly close above the 200-week ma at 0.8796 as confirmation.”

“The pair has recently found support at 0.8525, 0.8505/00, the lows from mid-July, and we suspect that this is now a short-term floor for the market.”