12 Feb 2015
EUR/GBP: Breached the five year down channel - CB
FXStreet (Guatemala) - Karen Jones, chief analyst at Commerzbank explained that EUR/GBP has sold off to the base of a 5 year down channel at 0.7386.
Key Quotes:
"The new low of .7385 has been accompanied by a large divergence of the daily RSI and we would allow for a retracement to 0.7540 ahead of further weakness."
"Below 0.7385 would introduce scope to 0.7370 the 200 month ma then 0.7235/25 an inter-year pivot."
"The Elliott wave count on the daily suggests that there is scope for a deeper retracement to 0.7655/0.7735, but the intraday charts are more negative and we continue to favour the downside."
"The market will remain directly offered below the 0.7713/67 region (October 2014 low). Key resistance remains the 0.7914 2013-2015 downtrend.
Key Quotes:
"The new low of .7385 has been accompanied by a large divergence of the daily RSI and we would allow for a retracement to 0.7540 ahead of further weakness."
"Below 0.7385 would introduce scope to 0.7370 the 200 month ma then 0.7235/25 an inter-year pivot."
"The Elliott wave count on the daily suggests that there is scope for a deeper retracement to 0.7655/0.7735, but the intraday charts are more negative and we continue to favour the downside."
"The market will remain directly offered below the 0.7713/67 region (October 2014 low). Key resistance remains the 0.7914 2013-2015 downtrend.