EUR/GBP approaches the 0.8671 April low – Commerzbank

The EUR/GBP pair is approaching 10-month lows at 0.8671. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, remarks that the pair would need to surpass the 0.8744 to alleviate some downside pressure. 

Key quotes

“EUR/GBP is poised to reach the 0.8671 April low. Below here lies the 2016-2021 uptrend at 0.8586. Note there is a 13 count on the daily chart and this is a warning signal. We are going to attempt tiny longs, looking for this level to hold the initial test.” 

“Initial resistance is the accelerated downtrend at 0.8744 and this is the minimum that needs to be overcome to alleviate downside pressure. Above here lies 0.8864/61 (lows seen in June, September and November) while capped here overall attention will remain on the downside.”