EUR/GBP: 5 month downtrend eroded - Commerzbank

Karen Jones, Analyst at Commerzbank, maintains a bullish near-term outlook for the EUR/GBP cross and explains the technical set-up. 

Key quotes:

“EUR/GBP has eroded the 5 month resistance line. We will assume an upside bias above the 200 day ma at .8816 for a move to the .9034 October high. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% retracements.”

“Key near term resistance is the .9034 12th October 2017 high. This guards the .9308 August high.”

“It recently sold off to the 61.8% retracement of the move seen this year at .8697. A close below here targets the .8530/78.6% retracement of the move seen this year.”