EUR/GBP could drop to 0.7740/0.7654 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could be headed towards the 0.7740/0.7654 area.

Key Quotes

“EUR/GBP after sitting all week just below the .7930/45 highs seen in February and March the market has finally failed and eroded the 0.7833 support line. Failure here should trigger losses to the .7740 April low and .7654, the March low”.

“We suspect that this is a head and shoulders top developing and if we are right this will b confirmed on a close below .7770”.