EUR/GBP should meet resistance at 0.8795/0.8801 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted rallies in the European cross should meet initial resistance in the 0.8795/0.8801 band.

Key Quotes

“No change, EUR/GBP held sideways to leave the view unchanged. Last week broke down from the base of its range and fell to its current April low at .8620 before rising again”.

“Rallies will find initial resistance at the late March and current April highs as well as the 55 day moving average at .8795/.8801, key resistance is the 200 day ma at .8883. While capped here we will continue to target .8526, the 78.6% retracement of the move from 2017. En route is a support line at .8582”.

“Above .8884 would allow for a recovery to the .8969 recent high and the .9034 October 2017 high”.