EUR/GBP: Bearish pressure grows for a test of the 200-DMA at 0.8913 – Credit Suisse

EUR/GBP has removed trend support from late September and analysts at Credit Suisse stay biased lower for a test of the 200-day average (DMA) at 0.8913.

Key quotes

“EUR/GBP remains below its 13 and 55-day averages and has now not only seen a clear break of key price support from the lows of the past two weeks at 0.9009/05 but now also trend support from late September and briefly its uptrend channel from late April. Our bias stays lower for a clear break here to increase the risk we are seeing a more important topping process with support seen next at the 200-day average at 0.8913.” 

“Whilst we would expect a fresh attempt to hold at the 200-day average of 0.8913, a closing break can expose the 0.8866/64 key price pivot. Big picture, we remain of the view a move below here remains needed to mark a more important top.” 

“Resistance is seen at 0.9026 initially, with 0.9052/60 ideally capping to keep the immediate risk lower. Above can reinforce a sideways range, with resistance next at 0.9081/91.”