EUR/GBP now targets 0.9400 and above – Commerzbank

In light of the recent price action, EUR/GBP could extend the up move to the 0.9400 handle and beyond, suggested Karen Jones, Team Head FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP has eroded the .9242 2008-2019 resistance line on a weekly closing basis. The break above here targets .9403, the 2016 high and eventually .9803. Short term however, the new high has not been confirmed by the daily RSI and we are likely to see a pullback ahead of further gains and the daily Elliott wave counts are suggesting that we allow for .9088, the 31st July low and possibly the 55 day ma at .9000”.

“Only below the July low at .8891 will alleviate upside pressure. Initial support lies at .9052 the 17th July high”.