EUR/GBP negative while below 0.8800/10 – Commerzbank

The stance on the European cross should stay negative while below the 0.8800/10 band, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP is struggling to overcome nearby resistance at .8800/.8810 and while capped here a negative bias remains. A close below .8697 is needed to confirm the market is ready to head lower towards the 78.6% retracement at .8527 (of the move up from the 2017 low). The intraday Elliott wave counts remain negative and we have a confirmed sell signal on the DMI so we will hang on to our short positions for now”.

“Should the December and January lows at .8689/87 again hold on a closing basis, we remain unable to rule out a recovery to the .8969 recent high and the .9034 October 2017 high, provided that support at .8687 holds”.