EUR/GBP potential for a test of 0.8920/75 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the European cross could re-visit the 0.8920/75 band.

Key Quotes

“EUR/GBP continues to recover, we highlighted recently that its drop to the September low at .8746 was accompanied by positive divergence on the daily RSI. The current bounce from above the .8743 14th July low and the 200 day ma at .8728 remains in force and we look for a short term rebound into the .8920/75 band. Between here and .8717 we have a LOT of support namely the 55 week ma, the 200 day ma and the 2015-2017 uptrend”.

“Below .8700 would target the 0.8530/78.6% retracement of the move seen this year”.

“Above .9145 would retarget the .9308 recent high”.