In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the recent upside in the cross could be running out of steam.
Key Quotes
“EUR/GBP’s new high of 7945 has been accompanied by a divergence of the daily RSI, which is reflecting a loss of upside momentum near the previous high – this does not bode well for the up move”.
“The market is losing upside momentum at the 200 week moving average at .7933”.
“Key support remains the four month uptrend line and 55 day ma at .7772/46. Below here will trigger losses to the 0.7565 38.2% retracement and the .7527 February low”.
(Market News Provided by FXstreet)