EUR/GBP to target the 0.8465 May 2019 low on a close below the five-year uptrend at 0.8591 – Commerzbank

A big move has been seen in the pound, with the EUR/GBP pair eroding the 2016-2021 uptrend at 0.8591. A second daily close below this level would open the path towards the 0.8465 May 2019 low, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, briefs.

Key quotes

“EUR/GBP has again sold off and has now eroded the 2016-2021 uptrend at 0.8591, we will need a second close below here to confirm the break but this will then target the 0.8465 May 2019 low.” 

“Initial resistance is the accelerated downtrend at 0.8695 and this is the minimum that needs to be overcome to alleviate downside immediate pressure. Above here lies 0.8864/61 (lows seen in June, September and November) while capped here overall attention will remain on the downside.”