FXStreet Karen Jones, head of FICC Technical analysis at Commerzbank, notes that the prospects for the European Pair on 0,8599/45 are positive.
“The Outlook for the EUR/GBP is neutral. In 2017, the downward trend of 0,8706 has been eroded, but the break was not sustainable: The EUR/GBP extended its gains recently on the 2017 channel of 0.8702. We are not, however, be extremely careful, because the fracture was sustained, and it went back down! Above the 200-day MA 55-day MA of 0,8599/45 we retain a positive Outlook and a possible Test of the 0,8790 March High with a potential increase to the January High of 0,8852. Without strong prospects, we will leave our Short positions.”
“Under the 55-day MA, the target is located on the 18. May Low, which may defended Deep from 0,8383 and if this falls, the next key support at 0,8334/04.”
** FXStreet News Editorial, FXStreet**