Karen Jones, analyst at Commerzbank, points out that the EUR/GBP’s new low of .8471 was not been confirmed by the daily RSI and it would allow for another test of the accelerated downtrend at .8647.
“While capped here downside risk remains for losses to the 200 week ma at .8384. It is on the defensive. Above the downtrend, rallies are likely to find initial resistance at .8722 (22nd February high) ahead of .8751, .8847 (55 and 200 day ma).”
“The market is expected to struggle on rallies to the 200 day ma at .8849, and only above here allows for a move to the October .8941 high, which is expected to contain the topside.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.