EUR/GBP: Key day reversal points towards short-term upside – Commerzbank

EUR/GBP remains bid after closing above 0.90 on Monday and Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the pair to extend the upside momentum in the near-term.

Key quotes

“Yesterday EUR/GBP formed a key day reversal by first falling below the late December low to its current January low at 0.8907 before rising above the December 31 high at 0.9036. This bullish reversal points to further upside being seen in the course of this week, provided that the currency pair stays above the 0.8907 recent low.”

“Minor resistance above the 0.9070 early November high comes in at the 0.9140/65 October and December 7 and 15 highs. Further resistance is seen at the 0.9178 June peak and also at the December high at 0.9230.” 

“Below the recent low at 0.8907 sits key support at the 0.8865/61 June, September and November lows.”