EUR/GBP: Market will continue to weigh on the downside - Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/GBP cross earlier rally which was rejected by the previous uptrend, which is now acting as resistance at .8991 and this will continue to weigh on the downside.

Key Quotes

“The market is probing the 200 day ma at .8862. While this holds on a closing basis we will assume that the market is still relatively neutral. However the market has failed to clear the .9101 August high and it is possible that it will prove to be a top and below the 200 day ma will target .8810 the low from the end of November.”

“Above .9101/20 would target the top of the 2016-2019 channel at .9165. Further consolidation looks likely very near term.”