EUR/GBP neutral to negative near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the stance on the European cross remains neutral to negative in the short term.

Key Quotes

“EUR/GBP remains subdued, trading below the 55- and 200-day moving averages at .8550/97, which is reinforced by the seven month resistance line at .8584.It is grinding higher and remains capable of testing these resistances, but is expected to fail”.

“While this caps, a retest of key support at .8334/04 may be seen. If slipped through, the .8252 the July 2016 low would be in focus”.

“A negative bias is now entrenched below the .55 and 200 day ma. Should a rise above the 2016-17 resistance line at .8590 be seen we would have to re-evaluate our forecast”.