EUR/GBP: a test of 0.8963 is not ruled out – Commerzbank

The European cross could pick up pace to the 0.8960, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP is sidelined/neutral following the erosion of the 55 and 200 day moving averages and the 5 month resistance line. The intraday Elliott wave counts are conflicting. We remain unable to rule out recovery to 8936 January high and the .9034 October 2017 high. The market has the top of a shallow channel at .8963 and we suspect that it will struggle here (see chart) This remains the barrier to the .9071/.9175 61.8% and 78.6% Fibonacci retracements. Initial support lies circa .8800”.

“Key nearby support are the December and January lows at .8689/87”.