In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the outlook on the European cross remains bullish above 0.7746. Key Quotes “EUR/GBP’s recent high of .7927 has not been confirmed by the daily RSI and there is a loss of upside momentum as the market approaches the .7938 200 week moving average”. “We note the 13 count and the divergence of the daily RSI and would tighten up stops on longs. It remains immediately bid above the 2 month uptrend at .7746 currently – while under pinned here an upside bias will remain intact”. ”We continue to target .8030/50, this is the measurement higher from the base .7492-.6937 it is also a Fibonacci retracement and we would expect to see initial failure in this vicinity”. For more information, read our latest forex news.