Karen Jones, the analyst at Commerzbank, notes that EUR/GBP cross has held the initial test of the .9088 31st July low and remains downside corrective – the market has temporarily topped at .9327 and the market has already sold off to .9088, the 31st July low.

• “We look for losses to the 55-day ma at .9022 and there is scope for the 50% retracement at .8896. The intraday Elliott wave counts are conflicting and for now, we will step aside. Intraday rallies are likely to hold below .9225. Above .9327 targets .9403, the 2016 high and eventually .9803. Only below the July low at .8891 will alleviate upside pressure.
• We regard .8465 as an interim low.”