EUR/GBP could test 0.8383 in the short term – Commerzbank

The European cross could grind lower and test 0.8383 in the near term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/GBP has failed to hold over the 0.8614 recent high. This coupled with the divergence of the daily RSI and the 13 count on the daily all point to initial failure here and a move back towards possibly the 0.8383 near term support line”.

“Longer term the market remains on course for the .8815 February 2013 peak. Please note that we have various Elliott wave counts that suggest that the move will extend towards the .9250 area”.

“Intraday dips are indicated to hold .8540/.8400 ahead of another leg higher”.