EUR/GBP to break 0.8808 swing lows?

• EUR/GBP drops further to key support.
• EUR/GBP downside propelled on stops.

EUR/GBP fell sharply below the 200-D MA at 0.88296 on continued failures at the 100 day MA at 0.8892. Currently, EUR/GBP is trading at 0.8816, down -0.84% on the day, having posted a daily high at 0.8911 and low at 0.8810.

The London fix sent sterling on a tear yet again and the move has been extended through the 1.39 handle to fresh highs of 1.3942 on stops. The pound has been better bid since the reports that Spain and the Netherlands are willing to back a soft Brexit deal and sending the pound to is at the highest level against the dollar since the referendum.

EUR/GBP levels

EUR/GBP fell just short of the 0.8808 swing lows and analysts at Commerzbank explained that below 0.8808 would retarget the 0.8697 recent low. "Key near-term resistance is the 0.9034 October 12 2017 high. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements," the analysts explained.