EUR/GBP could slip back to the 0.8300 area – Commerzbank

There is scope for EUR/GBP to re-visit the 0.8300 neighbourhood, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The market continues to consolidate circa its 200 day ma at .8497 (this has been broken for the first time since Dec 2015). We look for a decline to extend to the .8304 Dec 2016 low. Initial resistance lies at .8592 ahead of the resistance line at 0.8596 and we will maintain a negative bias below here”.

“Only above .8596 would allow for another run up to .8671 the 30th December high and possibly key resistance offered by Fibo resistance and the recent high at 0.8852/53. We assume that .8852/53 is a short term top for the market”.