EUR/GBP: On the defensive - Commerzbank

Karen Jones, analyst at Commerzbank, points out that the EUR/GBP cross has recently failed ahead of the .8861/71 (55 and 200 day ma) and cloud resistance at .8887, while minor support has been eroded to leave the focus on the .8620/18 lows.

Key Quotes

“Only failure at .8620/18 would suggest ongoing weakness to the base of the channel at .8541 and potentially the 200 week ma at .8365. It is on the defensive.”

“The market is expected to struggle on rallies to the 200 day ma at .8861, and only above here allows for a move to the 55 day ma at .8871 and this, together with the October .8941 high, are expected to contain the topside.”