EUR/GBP now targets 0.8526 – Commerzbank

The European cross is now looking to a test of 0.8526, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP has at last broken down from the base of its range and we continue to target .8526 the 78.6% retracement of the move from 2017. Near term it remains offered below .8800/.8810. Initial resistance is the 0.8722 near term downtrend. The intraday Elliott wave counts remain negative and we have a confirmed sell signal on the DMI. We have lowered the stop on our short positions for now”.

“Above .8810 would allow for a recovery to the .8969 recent high and the .9034 October 2017 high (not favoured)”.