EUR/GBP: Profit-taking amid a pullback to the 0.8813 support line – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, does not rule out a slide to the short-term uptrend at 0.8813 on the EUR/GBP pair before recovery. 

Key quotes

“EUR/GBP came very close last week to its upside measured target of 0.9060 (high was 0.9056). We are seeing some very near-term profit-taking and note that the market has already slipped back to the 55-day ma at 0.8872. There is scope for the short term support line at 0.8813 and we look for dips lower to hold here.” 

“Above 0.9086 we target the 0.9184 then 0.9323, the 61.8% and 78.6% retracement of the move seen since March.”