EUR/GBP on the defensive below 0.8819/20 – Commerzbank

The European cross remains on the defensive as long as it trades below the 0.8819/20 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP is essentially side-lined below the 200 day ma at .8819/20 and stays overall on the defensive while below here. Directly above the 200 day ma we have the .8846 7 th May high and the 55 week moving average at .8859 and we will assume that we will need to regain this area for an upside bias to emerge. However while capped here, it is on the defensive and below .8715 targets the .8697 end of May low and the 0.8620 April low”.

“Above the 55 week ma at .8859 we would allow for a recovery to the .8969 recent high and the .9034 October 2017 high”.