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Karen Jones, analyst at Commerzbank, suggests that their negative bias remains entrenched for the EUR/GBP cross after it has recently failed ahead of the .8861/62 (55 and 200 day ma) and cloud resistance at .8887.

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“Minor support has been eroded to leave the focus on the .8620/18 lows. Only failure at .8620/18 would suggest ongoing weakness to the base of the channel at .8541 and potentially the 200 week ma at .8371. It is on the defensive.”

“The market is expected to struggle on rallies to the 200 day ma at .8861/62, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”