EUR/GBP should face resistance at 0.8588/90 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, EUR/GBP should find initial resistance in the 0.8588/90 band ahead of 0.8709/0.8764.

Key Quotes

“The market is bouncing from a plethora of support offered by the .8452 support line, the .8439 2015-2017 uptrend and the .8410 55 week ma together the .8401 February low. Initial resistance lies at .8588/90 the 55 and 200 day moving averages and then .8709 and .8764 (downtrends) and we suspect that this will cap for now. Note intraday Elliott wave indicates that the market will fail here”.

“Above .8764 there is scope to tackle the .8852 January high”.