EUR/GBP: Market is consolidating – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that EUR/GBP is still side lined, but the correction higher has proved to be very tepid indeed and the market remains on the defensive.

Key Quotes

“There remains scope very near term for a move into the .8705/.8790 band (current intraday Elliott wave counts) ahead of further losses. Below .8571 we would allow for the slide to extend to the .8465 2019 low.”

“We note the TD support at .8485. Initial resistance is .8786 the mid September low. Key resistance is the 55 day ma at .8834 and the October high at .9022. While capped here a negative bias is entrenched.”

“Resistance above the current October high at .9022 comes in at the .9149 September high. A rise above the next higher .9327 level would lead to the 2016 peak at .9403 to be in focus.”