EUR/GBP: On the defensive? - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the EUR/GBP cross is correcting higher near term, after bouncing from the base of the 2017-2019 channel at .8535.

Key Quotes

“Rebounds will find nearby resistance offered by the .8684 accelerated downtrend and while capped here the market will remain offered. Below the channel targets the 200 week ma at .8384. It is on the defensive. Above the downtrend, rallies are likely to find initial resistance at .8722 (22nd February high) ahead of .8786, .8852 (55 and 200 day ma).”

“The market is expected to struggle on rallies to the 200 day ma at .8852, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”