EUR/GBP key support remains at 0.7891/34 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, key support area for the European cross remains in the 0.7891/34 band.

Key Quotes

“EUR/GBP remains under pressure following its recent reversal from target. It has sold off to nearby support at .7927, the February high”.

“Key support remains the four month uptrend line and 55 day ma at .7891/.7834 and these are now exposed”.

“We view the market as recently topped following a 13 count on the daily chart, complex divergence of the daily RSI and the failure ahead of 2008-2016 resistance line, which is located at .8162 – we look for failure”.