EUR/GBP: Downside pressure to fade on a break above the 55-DMA at 0.8529 – Commerzbank

EUR/GBP is correcting higher. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to test the 55-day moving average (DMA) at 0.8529 and alleviate downside pressure above here.

EUR/GBP to target 0.8239 below the 0.8400 level

“EUR/GBP is correcting higher near-term, new lows charted last week were not confirmed by the daily RSI, and on Monday we charted an outside day to the topside.”

“We are correcting higher and attention is on the 55-DMA at 0.8529. The market will need to regain this in order to alleviate downside pressure and to challenge 200-DMA at 0.8589 and then the 0.8659/73 highs since May.”

“Below 0.8400 attention should revert to the 0.8239 2019 low and the 200-month ma lies at 0.8167.”