Karen Jones, analyst at Commerzbank, explains that the EUR/GBP’s rally higher was rejected by the previous uptrend, which is now acting as resistance at .9000 and while capped here the market will continue to weigh on the downside.
Key Quotes
“The market has eroded the 200 day moving average and this tips it into more negative territory. We look for losses to .8810 the low from the end of November, which we suspect will hold the initial test. Failure at .8810 the end of November low would target the .8655 November low. We note the 13 count on the 240 minute chart and would tighten stops now.”
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