Karen Jones, analyst at Commerzbank, explains that the EUR/GBP cross is consolidating as its recent spike lower held over .8900 and the market held above the .8941 October high on a closing basis.
Key Quotes
“For now we will assume an upside bias is maintained (although the market has lost upside momentum for now). The market is struggling to clear the .9101 August high. Above .9101 would target the top of the 2016-2019 channel at .9165. Further consolidation looks likely very near term. Below .8900 lies the 200 day ma at .8855.”
“Only unexpected failure at .8810 the end of November low would target the .8655 November low.”
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