The outlook for the European cross remains bid while above 0.8788, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP one up day is followed by a down day and while the 55 week moving average at .8862 has been eroded we have yet to see a close above here. For now the market remains bid very near term while above the 55 day ma at .8788. We favour the upside as it looks pretty directional (note the buy signal on the daily DMI). We would now allow for a recovery to the .8969 recent high and the .9034 October 2017 high”.

“Dips lower will find initial support at .8788 the 55 day ma. This guards the .8717 15th June low. While above here we will assume that it stays bid”.