EUR/GBP fails at the 0.8471 resistance, attention is on the 0.8239 2019 low – Commerzbank

EUR/GBP has failed at initial resistance and is under pressure. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to pungle towards the 0.8239 2019 low.

Bearish bias while below 55-day moving average at 0.8532

“EUR/GBP has tested and failed at key nearby resistance at 0.8471, which represents the April 2021 low and the May 2019. This is negative price action, and while we hold below the 55-DMA at 0.8532 we stay negative for now.”

“Attention is on the 0.8239 2019 low and the 200-month ma lies at 0.8159.” 

“The near-term bounce is viewed as corrective for now. EUR/GBP will need to regain the 55-DMA at 0.8532 in order to alleviate downside pressure and to challenge the 0.8659/73 highs since May.”