EUR/GBP momentum is slowing ahead of a cluster of Fibonacci supports at 0.8543/20, including the 38.2% retracement of the entire 2015/2020 bull trend and economists at Credit Suisse look for this to hold for now.
“With momentum now slowing we continue to look for the 38.2% retracement of the entire 2015/2020 bull trend at 0.8520 to hold at first for a consolidation/recovery phase.”
“Big picture, we look for a break in due course which should then 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 key 0.8281/39 lows of 2019 and 2020.”
“Resistance moves to 0.8617/21 initially, above which can see a move back to 0.8637 and then the 13-day exponential average and price resistance at 0.8675/80, but with this still ideally capping.”
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