EUR/GBP neutral/negative below 0.8800 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the European cross keeps the neutral/negative stance while below the 0.8800 handle.

Key Quotes

“EUR/GBP has traded through the December and January lows at .8689/87. This has held on a closing basis and the danger is that the market will head back into its range. A close below here would trigger losses to the 78.6% retracement at .8527 (of the move up from the 2017 low). Right now it still remains neutral to negative below .8800. The intraday Elliott wave counts remain negative and we have a confirmed sell signal on the DMI so we will hang on to our short positions for now”.

“Should the December and January lows at .8689/87 again hold, we remain unable to rule out a recovery to the .9034 October 2017 high, provided that support at .8687 holds”.