Karen Jones, analyst at Commerzbank, suggests that the EUR/GBP cross should see further recovery this week after last week, it managed to close above the 55 day ma.
“We should see a move towards the recent high at .8723 and .8819 (200 day ma). The market is expected to struggle on rallies to .8819/23, and only above here allows for a move to the October .8941 high.”
“It is viewed as having based recently at the .8471 recent low. Below here (not favoured) would allow for a slide to the 200 week ma at .8419 (although this is less favoured).”