EUR/GBP to dissipate downside risks on a break above 0.8621 – Commerzbank

EUR/GBP's attention is on the 20-day ma at 0.8621 as while the latter caps, downside risks linger for the pair, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“EUR/GBP continues to recover – we have a large divergence of the daily RSI and the downtrend is being eroded – attention is on the 20 day-ma at 0.8621.” 

“The intraday Elliott wave counts continue to imply that the downside scope is limited, but while capped by the 20-day ma, downside risks remain – we are therefore currently neutral.” 

“The recent low was 0.8549/47 and this guards the 0.8465 May 2019 low. We have TD support at 0.8492.”