EUR/GBP initial support lies at 0.8116 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could find its initial support at 0.8116.

Key Quotes

“EUR/GBP appears to be consolidating following its move to its next band of resistance – the 50% retracement of the move down from the 2009 peak at 0.8370 and the 78.6% retracement of the move from 2013 at .8412, and we would allow these to hold the initial test. This is regarded as the last defence for the .8815 February 2013 peak”.

“Dips lower will find initial support at .8116 the April 2016 high and .7994 the 16th June high. The intraday Elliott wave counts are suggesting a retracement to .8220/.8130 be allowed for ahead of further strength”.