EUR/GBP to alleviate downside pressure on a close above 0.8603 – Commerzbank

EUR/GBP is losing downside momentum and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to correct higher if it closes above the 20-day moving average at 0.8603.

Key quotes

“EUR/GBP charted a new low of 0.8533 last week, which was again not confirmed by the daily RSI, and we continue to suspect a correction higher is likely. However, we will need a close above the 20-day ma at 0.8603 to confirm.”

“The intraday Elliott wave counts continue to imply that the downside scope is limited, but while it continues to close below the 20-day ma, downside risks remain.”

“The recent low was 0.8533 and this guards the 0.8465 May 2019 low. We have TD support at 0.8482.”