EUR/GBP is through its six-month downtrend – Commerzbank

EUR/GBP has eroded the six-month downtrend and is trading above the 0.91 level. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the 0.9150/78 recent highs.

Key quotes

“EUR/GBP last week charted a key day reversal and has now eroded the six-month downtrend. Attention has reverted to key resistance offered by the 0.9150/78 recent highs. Near-term dips are likely to remain supported by the 55-day ma at 0.8985.” 

“A move above 0.9184 (Fibo) would trigger a rise to the 0.9308 2017 high and 0.9323. This is the location of the 78.6% Fibonacci retracement. This is formidable resistance and is expected to hold the initial test.”