Karen Jones, analyst at Commerzbank, points out that the EUR/GBP has eroded the .8655 November low and started to erode the .8620 2018 low, suggesting ongoing weakness to the base of the channel at .8549 and potentially the 200 week ma at .8335 should this also give way.
Key Quotes
“There is scope for a bounce higher very near term and we will attempt to sell the rally. The market stays directly offered below the 200 day ma at .8864, and only above here allows for a move to the 55 day ma at .8905 and this together with the October .8941 high are expected to contain the topside.”
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