FXStreet (Edinburgh) - Axel Rudolph, Senior Technical Analyst at Commerzbank, underlines the corrective tone of the current upside in the cross.
“EUR/GBP rapidly bounced off the 55 day moving average at .7974 and targets the .8033/36 resistance zone, made up of the late June and current August highs”.
“A break above .8033/36 area will introduce scope to challenge the .8074/82 38.2% Fibonacci retracement of the March-to-July decline and May low”.
“The recent rally continues to be indicated as being corrective only and should fail ahead of the .8136/59 50% retracement, February low and late May high at the very latest”.
“Short term support below the 55 day moving average at .7974 comes in along the one month uptrend line at .7955 and at the .7935 August 13 low”.