EUR/GBP breaks with ease below 0.8609/07 to extend the bear trend to 0.8520 – Credit Suisse
|EUR/GBP has removed with ease the 0.8609/07 mark and this should see the trend stay directly lower with next support seen at 0.8520 – the 38.2% retracement of the entire 2015/2020 bull trend, analysts at Credit Suisse appraise.
Key quotes
“EUR/GBP has seen a sharp fall and spike lower overnight and this sees the market remove with ease our first core objective of the “neckline” to the late 2019/early 2020 base and long-term uptrend from late 2015 at 0.8609/07. This sees the immediate trend stay directly lower with support seen next at 0.8542/33, then 0.8520 – the 38.2% retracement of the entire 2015/2020 bull trend.”
“Whilst we would look for the 0.8520 mark to hold at first, below in due course should see a move to the ‘measured objective’ from the large ‘head & shoulders’ top at 0.8430, and now we think an eventual test of the 0.8281/39 lows of 2019 and 2020”.
“Resistance moves to 0.8586 initially, above which can see a move back to 0.8616, then 0.8637, with 0.8685 now ideally capping further strength.”
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