EUR/GBP rebound seen as corrective only – Commerzbank

The ongoing rebound in the European cross is considered as corrective only, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP continues to recover off the .8723 Fibonacci retracement which guards the 8700/.8697 June low. This rebound is viewed as corrective only and near term rallies will find initial resistance at .8834 200 day ma ahead of .8912 the 55 day ma and will now stay offered below here. The Elliott wave count is implying that the rebound will falter at .8835/65. Failure at .8697 would target the .8620 2018 low”.

“Above .9011/31 sits the .9101 August high. Above there would target the .9161 Fibonacci resistance and then the .9291 2009-2018 downtrend line”.