EUR/GBP scope for a pullback near term – Commerzbank

Following the recent price action, the European cross could see a retracement in the short term horizon, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP has eroded the top of its 5 month channel but we have seen no close above here and the market has not sustained the break. We note the 13 count on the 240 minute chart and this is a near term warning sign and we may see the market ease lower very near term. Intraday Elliott wave counts are conflicting”. 

“Slightly longer term, we remain unable to rule out a recovery to the .9034 October 2017 high. This remains the barrier to the .9071/.9175 61.8% and 78.6% Fibonacci retracements”.

“Interim support lies at .8771/.8800. Below here would re-target the December and January lows at .8689/87”.