EUR/GBP upside bias unchanged above 0.8599/45 – Commerzbank

The upside stance on the European cross should stays unchanged while above the 0.8599/45 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP view is neutral. It has eroded the 2017 downtrend at .8706 but did not sustain the break: EUR/GBP has recently extended gains through the 2017 channel at .8702. However we are extremely cautious as it did not sustain the break higher, however neither has it broken down! For now we will assume whole above the 200 day and 55 day ma at .8599/45 an upside bias remains to test the .8790 March high and potential to the .8852 January high. With no strong bias we will exit our short positions for now”.

“Below the 55 day ma will target the 18th May low, which guards the 0.8383 May low and failure here will retarget key support at .8334/04”.