EUR/GBP uptrend to resume, looks for a break of 0.9013 – Credit Suisse
|Analysts at Credit Suisse maintain a higher bias for the EUR to see a medium-term phase of strength on a broad basis following the completion of a base at 0.8866. EUR/GBP trades at 0.8954 and next resistance is seen at 0.9013.
Key quotes
“EUR/GBP continues to move steadily higher after successful tests of key support from the ‘neckline’ to its April base at 0.8866/64 and we maintain our upside bias.”
“A clear break above the top of the recent ‘outside day’ high at 0.9013 remains needed to add weight to our view an important turn higher is indeed underway again with resistance then seen at 0.9025/28 initially, then the recent high and ‘measured base objective’ at 0.9056/57. Whilst a fresh rejection from here should be allowed for, above in due course can see resistance next at the 50% retracement of the March/April fall at 0.9086 and eventually at the 61.8% retracement at 0.9184.”
“Immediate support moves to 0.8940, with 0.8917 now ideally holding to keep the immediate risk higher. A break can see a fall back to 0.8888/82, potentially a retest of 0.8866/64.”
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