EUR/GBP scope for a test of 0.8375/0.8229 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could be headed towards the 0.8375/0.8229 band.

Key Quotes

“EUR/GBP is starting to correct lower. Near term we have met a Fibonacci extension target at .8610, and we have a 13 count on the weekly chart and we are cautious at this point. The Elliott wave count on the daily is pointing to a 0.8375/0.8229 retracement”.

“Beyond a small correction the market remains on course for the .8815 February 2013 peak. Please note that we have various Elliott wave counts that suggest that the move will extend towards the .9250 area. Dips lower will find initial support at .8320/.8228, the 38.2% retracement ahead of .8116 the April 2016 high”.