EUR/GBP: Move higher is viewed as corrective – Commerzbank

Karen Jones, analyst at Commerzbank, points out that the EUR/GBP cross has slowly inched higher last week but failed ahead of the .8862/81 (55 and 200 day ma).

Key Quotes

“We have minor support at the .8745/23 band and this guards the .8620/18 lows. Only failure at .8620/18 would suggest ongoing weakness to the base of the channel at .8541 and potentially the 200 week ma at .8365. We have no strong bias.”

“The market is expected to struggle on rallies to the 200 day ma at .8863, and only above here allows for a move to the 55 day ma at .8884 and this, together with the October .8941 high, are expected to contain the topside.”