EUR/GBP: Negative bias remains entrenched - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that their negative bias remains entrenched for the EUR/GBP cross after it has recently failed ahead of the .8861/62 (55 and 200 day ma) and cloud resistance at .8887.

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“Minor support has been eroded to leave the focus on the .8620/18 lows. Only failure at .8620/18 would suggest ongoing weakness to the base of the channel at .8541 and potentially the 200 week ma at .8371. It is on the defensive.”

“The market is expected to struggle on rallies to the 200 day ma at .8861/62, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”