EUR/GBP still focused on 0.7360 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the outlook on the European cross remains negative and could test 0.7360.

Key Quotes

“EUR/GBP has seen a major key day reversal just ahead of key supports, which are the 50% retracement of the move from November 2015 at 0.7550 and the 200 day ma at .7530. Beyond a rebound, we are negative”.

“The market has recently completed a head and shoulders top, which offers a downside measured target to .7360”.

“The market will find initial resistance at the .7753 23rd May high. The short term downtrend at .7807 maintains near term downside pressure”.