EUR/GBP: Upside correction remains in force – Commerzbank
Our preference: target 0.8749.
Alternative scenario: above 0.8819, look for 0.8846 and 0.8862.
According to Karen Jones, analyst at Commerzbank, EUR/GBP’s
correction higher remains in force and is capable of gains to .8840/90 where they are looking for signs of failure.
“Below .8700 attention will revert to the .8620/18 2018 and 2019 lows. We have minor support at
.8723 and this guards the .8620/18 lows. Failure at .8620/18 would suggest ongoing weakness to the base of the channel at .8545 and potentially the 200 week ma at .8349.”
“The market stays directly offered below the 200 day ma at .8864,
and only above here allows for a move to the 55 day ma at .8898 and this,
together with the October .8941 high, are expected to contain the topside.”