EUR/GBP to enjoy a correction higher towards the 55-DMA at 0.8561 – Commerzbank

EUR/GBP is correcting higher as the pair has pierced through a near-term downtrend. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, allows for some recovery in the near-term with next resistance seen at the 0.8529 mark.

Failure at 0.8471/65 to target 0.8314/0.8239

“EUR/GBP has severed its near term downtrend and is expected to correct higher near-term.” 

“Initial resistance is the 20-day ma at 0.8529 and the 55-day ma at 0.8561 and the market will remain on the defensive while capped here.”

“Failure at 0.8471/65 on a closing basis would target 0.8314/0.8239 as well as the 200-month moving average at 0.8142.”