The outlook on the European cross remains negative while below 0.8870, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“EUR/GBP looks to be stalling at its downtrend from August last year at .8847 and its 200 day ma at .8870, where we suspect that it will struggle”.
“While capped by the 200 day ma at .8870, a negative bias remains and we will continue to target .8526, the 78.6% retracement of the move from 2017. En route are the .8689/87 December and January lows. Further down sits the .8620 April low and a support line at .8566”.
“Above .8872 would allow for a recovery to the .8969 recent high and the .9034 October 2017 high”.