EUR/GBP rebounds appear limited – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional rallies in the European cross could remain limited.

Key Quotes

EUR/GBP no change, the market is seeing a very small bounce from the 23.6% retracement at 0.7702, having recently severed its uptrend and reversed just ahead of the 200 week ma, we suspect that near term rebounds will remain shallow”.

“The risk is this week that we will see further weakness to .7565, 38.2% retracement and potentially 0.7454, the 50% retracement. The market increasingly looks to have topped here and we will for now neutralise our forecast”.

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