EUR/GBP scope for further gains near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, EUR/GBP could extend its current strength in the short term.

Key Quotes

“The market has eroded its 5 month downtrend and we will head to the side lines as we suspect that the we will see further near term strength. The break higher has introduced scope to .8651/71, the February high and the 30th December high and possibly key resistance offered by Fibo resistance and the recent high at 0.8852/53. We assume that .8852/53 is a short term top for the market. Very near term we note 13 counts on the 60 and 240 minute charts and will attempt small shorts very near term”.

“Dips lower should remain well supported circa the 0.8507 200 day ma and will need to move back below here for attention to revert to the.8401 22nd February low once more”.