EUR/GBP: Risk for a more concerted downturn is growing – Credit Suisse


EUR/GBP has seen a sharp rejection of the 21 and 55-day averages and below 0.8971 should see a test of the July low at 0.8937, removal of which would mark a top, according to the Credit Suisse analyst team. The pair is currently trading near the initial resistance at 0.8997, though.

Key quotes

“A break of the low of the past week at 0.8985 /71 is seen likely to expose the 0.8937 July low. Below here would see a bearish ‘double top’ complete to mark a more important swing lower with support then seen next at 0.8909, then more importantly at 0.8866/64 – the ‘neckline’ to the April/May base, June lows and 61.8% retracement of the April/June rally. Whilst we would look for this to hold at first, a break in due course can see support at 0.8779 next.” 

“Resistance is seen at 0.8997 initially, with the immediate risk seen lower whilst below 0.9024/30. Above can see a move back to 0.9048, then 0.9060/65, but only above this latter area would see the risk turn back higher in the range.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces from the lows on hopes for a fiscal stimulus deal

EUR/USD has bounced off 1.17 as hopes for a new fiscal stimulus deal have risen. Earlier, US pending home sales and ADP Non-Farm Payrolls beat estimates. The chaotic US presidential debate weighed on sentiment beforehand. 

EUR/USD News

GBP/USD hits 1.29 on better market mood

GBP/USD is trading around 1.29, up from the lows. The safe-haven dollar is falling amid fresh hopes for a fiscal stimulus deal. Concerns about Brexit and the British coronavirus situation weighed on the pound earlier.

GBP/USD News

XAU/USD rallies back to $1900 mark, lacks follow-through

Gold reversed an intraday dip to 100-hour EMA, around the $1882-81 region. Mixed oscillators on hourly/daily charts warrant some caution for bullish traders. Any further move up might be seen as a selling opportunity amid stronger USD.

Gold News

Presidential Debate: Stocks set to suffer on Trump's refusal to accept the results

President Trump and rival Biden clashed in a chaotic shouting match. Biden's initial lack of sharpness may boost tighten the elections. Trump's refusal to accept the result and embrace of white supremacists increase the chance of violence.

Read more

WTI clinches daily highs near $39.50 ahead of EIA

Prices of the barrel of the American benchmark for the sweet light crude oil are partially fading Tuesday’s pullback and manage to regain the $39.50 region ahead of key supply data.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures