EUR/GBP: Upside correction remains in force – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the EUR/GBP’s correction higher appears to be struggling around the 38.2% retracement however it remains capable of gains to .8840/90 where they are looking for signs of failure.

Key Quotes

“We have minor support at .8723 and this guards the .8620/18 lows. Failure at .8620/18 would suggest ongoing weakness to the base of the channel at .8545 and potentially the 200 week ma at .8349.”

“The market stays directly offered below the 200 day ma at .8864, and only above here allows for a move to the 55 day ma at .8896 and this, together with the October .8941 high, are expected to contain the topside.”