EUR/GBP is approaching the base of a 2 year down channel – Commerzbank

Karen Jones, analyst at Commerzbank, explains that the EUR/GBP cross has eroded the .8620/18 lows (April 2018 low) and remains on the defensive and they are looking for losses to the base of the channel at .8539 and potentially the 200 week ma at .8370.

Key Quotes

“It is on the defensive. Rallies are likely to find initial resistance at .8620 and .8730 (22nd February high) ahead of .8845/59 (55 and 200 day ma). Minor support has been eroded to leave the focus on the .8620/18 lows.”

“The market is expected to struggle on rallies to the 200 day ma at .8859, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”