FXStreet (Edinburgh) - According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the 0.7925 level is key in the near term.
“EUR/GBP saw a small rebound yesterday but still cannot clear the 20 day ma at .7925. In fact the market has not seen anything more than marginal breaks of this moving average since the middle of March”.
“However we also have the triple divergence of the daily RSI which suggests that the down move is exhausted for now”.
“We noted the potential falling wedge and a close above .7925 should be enough to trigger a rally towards the .7981 2014 downtrend, where we would expect the rally to fail”.
“Key nearby support is the recent low at .7873 and the base of the wedge at .7866. Directly below here lies the second down channel at .7805. Beyond this we target the .7757 2012 low”.