EUR/GBP targets 0.8526 while below 0.8873 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the stance on the European cross remains negative as long as it trades below the key 200-day sma, at 0.8873.

Key Quotes

“EUR/GBP has eroded its two month support line and given the markets recent inability to overcome its downtrend from August last year and its 200 day ma at .8873, we will adopt a more negative stance”.

“While capped by the 200 day ma at .8873 we will continue to target .8526, the 78.6% retracement of the move from 2017. En route are the .8689/87 December and January lows. Further down sits the .8620 April low and a support line at .8571”.

“Above .8875 would allow for a recovery to the .8969 recent high and the .9034 October 2017 high”.