17 Aug 2015
EUR/GBP: In between major levels - CB
FXStreet (Guatemala) - Karen Jones, chief analyst at Commerzbank explained that EUR/GBP shot up towards the 2015 downtrend line at .7176 last week.
Key Quotes:
"Around it we expect recent upside momentum to diminish. The Elliott wave count on the daily is suggesting the recent rally was nothing more that an a-b-c correction. Should this not be the case, the July peak at .7223 could be back on the map. The intraday Elliott wave is more positive suggesting gains will reach .7300 before failure. Given that the market has recently sold off to the base of its 6 year downchannel a deeper retracement remains plausible."
"2015 downtrend at .7176."
"While no daily chart close above the 2015 downtrend line is made, a slip back below Tuesday’s low at .7040 would trigger losses to the .6990 June low . Further down lurks the July low at .6937. The .6952/37 area will act as the break down point to the .6541 2007 low."
Key Quotes:
"Around it we expect recent upside momentum to diminish. The Elliott wave count on the daily is suggesting the recent rally was nothing more that an a-b-c correction. Should this not be the case, the July peak at .7223 could be back on the map. The intraday Elliott wave is more positive suggesting gains will reach .7300 before failure. Given that the market has recently sold off to the base of its 6 year downchannel a deeper retracement remains plausible."
"2015 downtrend at .7176."
"While no daily chart close above the 2015 downtrend line is made, a slip back below Tuesday’s low at .7040 would trigger losses to the .6990 June low . Further down lurks the July low at .6937. The .6952/37 area will act as the break down point to the .6541 2007 low."