EUR / GBP remains in demand after closing above 0.90 on Monday and Axel Rudolph, FICC senior technical analyst at Commerzbank, expects the pair to extend bullish momentum in the near term.
“Yesterday, the EUR / GBP formed a key reversal by first falling below the late December low to its current January low at 0.8907 before climbing above the December 31 high at 0.9036. This bullish reversal points to further hikes to be seen throughout the week, provided the cross remains above the recent low of 0.8907.”.
“Minor resistance above the 0.9070 high in early November sits at the October highs and December 7-15 highs at 0.9140 / 65. Further resistance is seen at the June peak at 0.9178 and also at the December peak at 0.9230 ”.
“Below the recent low at 0.8907 is key support at 0.8865 / 61, where the lows for June, September and November are.”