EUR/GBP could struggle around 0.7905/45 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, further upside in the cross could face strong resistance in the 0.7905/45 band.

Key Quotes

“EUR/GBP has eroded the short term downtrend at .7791 and its 55 day ma. This has been enough to negate the head and shoulders top. Nonetheless it is approaching tough resistance at .7905 (61.8% retracement up to .7945 the high from the beginning of May and we suspect that it will struggle”.

“Nearby support at .7736 (26th April low) and .7654 (March low) guard the key supports, which are the 50% retracement of the move from November 2015 at 0.7550 and the 200 day ma at .7538”.