EUR/GBP: No weekly close has been seen below the 55 week ma - Commerzbank

"EUR/GBP last week eroded a major support band, namely the September low at .8746/33 and the 55-week ma at .8735 but we have not seen a weekly close below here," notes Karen Jones, Head of FICC Technical Analysis at Commerzbank.

It has sold off on Friday to the 61.8% retracement of the move seen this year at .8697, the strong rebound from here suggests it is reluctant to head lower still at this juncture and we would allow for a rebound. A close below here targets the .8530/78.6% retracement of the move seen this year.

Near term rallies should find decent resistance at .8840/80 (38.2% and 50% retracements of last leg down.

Key near term resistance is the .9034 12th October 2017 high. This guards the .9308 August high.

• Short Term Trend (1-3 weeks): Stabilised at the 55 week-ma.
• Long term trend (1-3 months): Market has recovered from 55 week-ma.