The European cross remains under pressure and further downside could re-visit the 0.8240 region, in opinion of Karen Jones, Team Head FICC Technical Analysis at Commerzbank.
“EUR/GBP has held the initial test of the 61.8% retracement at .8380. The market remains under pressure having recently failed at the .8610 resistance. The failure of the .8453 support last week suggests that it is capable of retesting the .8239 December low. This together with the 55 quarter moving average at .8226 represents key support. The intraday Elliott wave count is negative, but we would allow for a small rally to .8490.”
“Below .8226 remain the June and October 2012 highs as well as the April 2016 high and the January and February 2014 lows at .8167/18.”