30 Jan 2015
EUR/GBP sell off has reached 43 year uptrend – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, shares that EUR/GBP has recently sold off to the 0.7445 43 year uptrend, and expects the pair to consolidate in the near term before weakening further.
Key Quotes
“EUR/GBP continues to see a minor recovery near term, this is viewed as a near term correction.”
“The Elliott wave count on the daily suggests that we will see a retracement to .7560/.7655.”
“The market has recently sold off to the .7445 43 year uptrend. This has been partly eroded, but we have yet to see a close below here, we are also holding over the base of a 5 year down channel at 0.7392.”
“Following such an extensive sell off we would allow for some near term consolidation ahead of further weakness. Below .7390 would introduce scope to .7235/25 an inter-year pivot."
“The market will remain directly offered below the .7713/67 region (October 2014 low). Key resistance remains the .7935 2013-2015 downtrend.”
“Medium term (1-3 months): .7591/61. The very long term target remains to be seen at .7445, the 43 year uptrend.”
Key Quotes
“EUR/GBP continues to see a minor recovery near term, this is viewed as a near term correction.”
“The Elliott wave count on the daily suggests that we will see a retracement to .7560/.7655.”
“The market has recently sold off to the .7445 43 year uptrend. This has been partly eroded, but we have yet to see a close below here, we are also holding over the base of a 5 year down channel at 0.7392.”
“Following such an extensive sell off we would allow for some near term consolidation ahead of further weakness. Below .7390 would introduce scope to .7235/25 an inter-year pivot."
“The market will remain directly offered below the .7713/67 region (October 2014 low). Key resistance remains the .7935 2013-2015 downtrend.”
“Medium term (1-3 months): .7591/61. The very long term target remains to be seen at .7445, the 43 year uptrend.”