EUR/GBP could advance to 0.8975 – Commerzbank

EUR/GBP could extend the rebound to the 0.8975 level, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“EUR/GBP last week sold off to and bounced from the 200 week ma at .8835 (on a closing basis). Please note the Elliott wave count on the daily suggests this is the end of the move and the 13 count on the 240 minute chart implies near term strength to .8975 for now.”

“Rallies will need to regain .8926 the 18th January high at the very minimum in order to alleviate immediate downside pressure. Above here is needed to allow for recovery to .9000 and.9086, this years high so far. Below .8835/25 will imply another leg lower to the .8671 April low.”