EUR/GBP could rebound to the 0.8880/0.8960 band – Commerzbank

The European cross could rebound to the 0.8880/0.8960 band in the near term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP will shortly encounter stronger support at the .8743 14th July low and the daily RSI has diverged on the move to a new low. Between here and .8713 we have a LOT of support namely the 55 week ma, the 200 day ma and the 2015-2017 uptrend. We note the TD perfected set up on the daily as well and we look for a short term rebound into the .8880/0.8960 band”.

“Below .8700 would target the 0.8530/78.6% retracement of the move seen this year”.