Commerzbank: EUR, GBP may reverse

Commerzbank points out that both EUR/USD and GBP/USD have reached the tops of 3-month channels.

According to the bank, EUR/USD made a-b-c correction (wave 4) and this move higher is already complete (euro retraced 61.8% of the decline). Resistance lies at $1.3340 and $1.3454/57 (200-week MA and the 2011-2013 resistance line). Attention: a confirmation’s needed (a decline below $1.3150). Downside targets lie at $1.2955, $1.2821/1.2796, $1.2740 and $1.2679/61.

Chart. Daily EUR/USD

For GBP/USD the confirmation will come in case of the break below $1.5425/1.5390 (38.2% retracement). Downside targets lie at $1.5270, $1.5155 and $1.5035 (base of the channel).

Chart. Daily GBP/USD

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