EUR/GBP potential consolidation near term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the European cross could face some consolidation in the near term ahead of a potential leg higher.

Key Quotes

“EUR/GBP finished the week by touching the 61.8% retracement of the move down from the October 2016 spike high – this is located circa .8987 and we would not be at all surprised to see the market consolidate below here ahead of any further strength towards .9059, the highs from mid October 2016. Please note that the daily RSI has not confirmed the new high and the 13 count on the daily chart suggests we will see some near term weakness”.

“The market will now stay immediately bid above the .8743 14th July low. Initial support is the .8781 near term channel”.