EUR/GBP is not ruled out in the very near term – Commerzbank
Our preference: above 0.8521 with targets at 0.8543 & 0.8558 in extension.
Alternative scenario: below 0.8521 look for further upside with 0.8511 & 0.8502 as targets.
Following the recent price action, EUR/GBP could attempt a bounce in the next days, according to Karen Jones,
Team Head FICC Technical Analysis Research at Commerzbank.
“The market came under pressure last week, however given that the market has again seen divergence of the daily RSI,
we suspect we will see only a very slow grind lower at best and may in fact see a bounce higher this week.
EUR/GBP remains stuck below last week’s high at .8606 and has now eroded last week’s low at .8522.
Below here lies the May low at .8465. We note the TD support at .8440 and we look for the market to hold here”.
“Above last week’s high at .8606 lies a minor downtrend channel resistance line at .8622
ahead of the four month downtrend line at .8760. Overhead resistance is reinforced by .8786 the mid-September low”.