EUR/GBP rallies find resistance around 0.8725 – Commerzbank

Occasional rallies in EUR/GBP should struggle around 0.8725, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“No change, EUR/GBP is weighing on the downside very near term having recently seen strong rejection from Fibo resistance and the top of the cloud at 0.8853. We assume that .8852/53 is a short term top and intraday rallies should remain capped circa .8725”.

“Initial support is the base of the cloud at .8479 and the 6 month uptrend at .8492. Minor support lies .8625/04”.

“Only above .8853 introduces scope for gains to the .9050 November high and even .9142 the 11th October high”.