EUR/GBP still targets 0.8815 in the longer run – Commerzbank

The European cross continues to target the 0.8815 level in the long term horizon, according to Senior Technical Analyst at Commerzbank Axel Rudolph.

Key Quotes

“EUR/GBP formed an interim low at .8487, not far above the two month support line at .8452. While .8487 underpins we still expect to see some days of Euro strength”.

“Our first upside target is the August 18th low at .8592 and our next upside target the July peak at .8614”.

“Longer term the market remains on course for the .8815 February 2013 peak. Please note that we have various Elliott wave counts that suggest that the move will extend towards the .9250 area”.

“Only currently unexpected failure at .8487/52 would make us short term bearish again and target the current August low and 55 day moving average at .8367/45”.