Forex Flash: EUR/GBP set for a correction lower – Commerzbank
Forex pairs in this Article » EUR/GBP
FXstreet.com (Barcelona) - As the EURGBP hasn't really managed to clear the 0.8420 (50% retracement of the move down from the 2011 peak), Commerzbank analysts note the TD perfection set up on the daily and weekly chart, which makes them nervous of chasing this move higher at this point. "We note yesterdays 'doji' (depicts indecision) and favor a near term correction lower, dips will find nearby support at 0.8344, 0.8295 (the 23.6% and 38.2% retracements of the last leg higher)", wrote analyst Karen Jones, pointing to other supports at 0.8295, 0.8221/25 (previous January 2012 low and December 2012 high), and key support at the base of the channel at 0.8105. "A close above 0.8440 will introduce scope to the 0.8505 2012 high", Jones added.