EUR/GBP: Consolidating - Commerzbank

Karen Jones, analyst at Commerzbank, points out that EUR/GBP cross continues to hold below the February peak at .8842 and they would allow for a small dip lower.

Key Quotes

“Dips should remain well supported by the March high at .8723 and below here should find support around the .8685 April high and the 55 day ma at .8645. Above .8842 lies the 61.8% retracement at .8870 that in turn guards the .8980 78.6% Fibonacci retracement.”

“Strong support below the 55 day moving average comes in at the March and current May lows at .8471/65. Directly above there lies the 200 week moving at .8467 and we look for this to hold the downside.”

“Below .8465 would allow for a sell-off to the April 2017 low at .8314.”