EUR/GBP: Market expected to struggle on rallies - Commerzbank

Karen Jones, analyst at Commerzbank, points out that the EUR/GBP’s new low of .8471 was not been confirmed by the daily RSI and it would allow for another test of the accelerated downtrend at .8647.

Key Quotes        

“While capped here downside risk remains for losses to the 200 week ma at .8384. It is on the defensive. Above the downtrend, rallies are likely to find initial resistance at .8722 (22nd February high) ahead of .8751, .8847 (55 and 200 day ma).”

“The market is expected to struggle on rallies to the 200 day ma at .8849, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”