EUR/GBP initial support lies at 0.8306 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted EUR/GBP faces initial support in the 0.8300 neighbourhood.

Key Quotes

“EUR/GBP has eroded major support offered by the .8490 2015-2017 uptrend, the .8430 55 week ma together and the .8401 February low. It has also eroded the.8356/51 neckline. The pattern developing on the chart is a large potential head and shoulder top and a weekly close below here will confirm. Initial support below here is 0.8306 the December 2016 low, then .8252 the July 2016 low. The move looks over-extended and we would allow a corrective rebound into the .8420/80 band very near term”.

“A negative bias is now entrenched below the .8572/92 55 and 200 day ma. Initial resistance lies at .8513, yesterdays high”.