EUR/GBP focus is on the mid-0.8400s – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the recent price action should promp the cross to refocus on the area around 0.8450.

Key Quotes

“EUR/GBP last week eroded its 6 month uptrend and remains on the defensive this week. The focus has dropped to the base of the cloud at 0.8454, which is currently holding. Below here will trigger losses initially towards the 0.8417 200 day ma and this guards the 0.8304 December low. Intraday rallies are indicated to be likely to struggle circa 0.8575/0.8600. Although the intraday Elliott counts are conflicting”.

“The market has recently reversed from Fibo resistance and the top of the cloud at 0.8853, and the downside risk has increased. We assume that .8852/53 is a short term top for the market”.