18 Jan 2016
EUR/GBP could slip back to the 0.7490 area – Commerzbank
FXStreet (Edinburgh) - In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, technicals suggest the European cross could grind lower to the 0.7490 neighbourhood.
Key Quotes
“EUR/GBP has eroded major resistance at .7555/75, we have charted a weekly close above here and above the 23.6% retracement of the move down from the 2009 high – this was located at .7614 and suggests that the market has indeed based”.
“The base .7492-.6937 suggests an upside measured target to approx .8030/50”.
“However the .7762 2012 low is likely to offer formidable resistance on route. We note the TD perfected set up on the daily chart and would allow for a dip back towards the .7492, the October high”.
Key Quotes
“EUR/GBP has eroded major resistance at .7555/75, we have charted a weekly close above here and above the 23.6% retracement of the move down from the 2009 high – this was located at .7614 and suggests that the market has indeed based”.
“The base .7492-.6937 suggests an upside measured target to approx .8030/50”.
“However the .7762 2012 low is likely to offer formidable resistance on route. We note the TD perfected set up on the daily chart and would allow for a dip back towards the .7492, the October high”.