In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the European cross could see a small retracement in the short term horizon.
“EUR/GBP has rallied towards and halted just ahead of the .8967 March high and the .8964 50% retracement, we are looking for a small pullback at this stage. We would allow for some near term profit taking. Dips back will find initial support at the 200 day ma at .8819 and the 55 day ma at .8805. Above .8967 will target the .9034 October 2017 high”.
“Dips lower will find initial support at .8805, the 55 day ma. This guards the .8775 uptrend, then .8717, the 15th June low. While above here we will assume that it stays bid”.