EUR/GBP could slip back to 0.8577/06 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the European cross looks poised to re-test 0.8577/06 area.

Key Quotes

“EUR/GBP has recently reversed just ahead of its Initial target of the 0.8724 16th August peak, and we look for slide back towards the .8577 support line and the 55 day ma at .8506. While this holds upside scope remains intact for a retest of the .8724 high and a break above here to the .8815 February 2013 peak”.

“Please note that we have various Elliott wave counts that suggest that the move will extend longer term towards the .9250 area”.