EUR/GBP: rallies should meet resistance around 0.8635 – Commerzbank

In view of Karen Jones, Team Head FICC Technical Analysis at Commerzbank, occasional bullish attempts in the European cross are seen meeting initial hurdle at 0.8635 ahead of 0.8802.

Key Quotes

“EUR/GBP has another 13 count on the daily chart PLUS divergence of the daily RSI and I think this will bounce near term. Rallies will find a minor downtrend at .8635 ahead of the 3 month downtrend at .8802. Overhead resistance is reinforced by .8786 the mid-September low”.

“Beyond this there is scope for the slide to extend to the .8465 2019 low. We note the TD support at .8485 and we look for the market to hold here”.