20 Feb 2015
EUR/GBP downside limited, more room for upside retracement – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, shares the technical outlook and key levels for EUR/GBP, expecting the downside move of the pair to remain limited, with Elliott Wave suggesting scope for further retracement to the upside.
Key Quotes
“EUR/GBP has collapsed lower through its its 200 month ma at 0.7370. This new low was not confirmed by the daily RSI and we have not seen a close below the 200 month ma, we suspect that the market may correct higher near term.”
“Below .7349 targets .7235/25 an interyear pivot.”
“The Elliott wave count on the daily suggests that there is scope for a deeper retracement to .7700/.7905, but the intraday charts are more neutral suggesting moves lower are likely to remain limited for now.”
“The market will remain directly offered below the .7713/67 region (October 2014 low).”
“Key resistance remains the .7902 2013-2015 downtrend.”
“Shorter term (1-3 weeks): holding the base of a channel at .7386”
“Medium term (1-3 months): .holding the base of a channel at .7386. Below here targets .7235/25 pivot.”
Key Quotes
“EUR/GBP has collapsed lower through its its 200 month ma at 0.7370. This new low was not confirmed by the daily RSI and we have not seen a close below the 200 month ma, we suspect that the market may correct higher near term.”
“Below .7349 targets .7235/25 an interyear pivot.”
“The Elliott wave count on the daily suggests that there is scope for a deeper retracement to .7700/.7905, but the intraday charts are more neutral suggesting moves lower are likely to remain limited for now.”
“The market will remain directly offered below the .7713/67 region (October 2014 low).”
“Key resistance remains the .7902 2013-2015 downtrend.”
“Shorter term (1-3 weeks): holding the base of a channel at .7386”
“Medium term (1-3 months): .holding the base of a channel at .7386. Below here targets .7235/25 pivot.”