EUR/GBP extra gains expected above 0.8751 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, keeps the cautious stance on the European cross in light of the recent price action.

Key Quotes

“EUR/GBP has eroded the 2017 downtrend at .8706 but it looks suspicious – we have a TD perfected set up on the daily and a 13 count on the 240 minute chart: EUR/GBP has extended gains through the 2017 channel at .8706. We are extremely cautious and we suspect that this is a false break and loss of the accelerated uptrend at .8672 will add weight to that view”.

“Last weeks low at .8524 guards the 0.8383 May low and failure here will retarget key support at .8334/04. If slipped through, the .8252 the July 2016 low would be in focus”.

“Above .8751 will introduce scope to the .8790 March high and potential to the .8852 January high”.