Axel Rudolph, analyst at Commerzbank, suggests that EUR/GBP cross swiftly bounced off its current December low at .8239 and is now retesting the November low and December 12 high at .8498/.8509, which they expect to cap.

Key Quotes

“Should this not be the case, we would have to allow for the .8522 mid-November low and the.8571/.8600 October low, 55 day moving average and late November high to be revisited.”

“Support below the December 9 low at .8393 comes in at the .8239 current December trough. Below it remain the June and October 2012 highs as well as the April 2016 high and the January and February 2014 lows at .8167/18.”

“Only a daily chart close above the .8509 December 12 high would neutralise our bearish view.”

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