EUR/GBP to break below the key 0.8520 support – Credit Suisse

EUR/GBP recovery proved to be brief to say the least and the spotlight has quickly reverted back to key Fibonacci supports at 0.8549/20. With an existing top in place, analysts at Credit Suisse continue to look for an eventual clear break lower.

Key quotes

“The rebound in EUR/GBP proved to be brief to say the least and the early gains seen yesterday have been aggressively reversed for a close back below the 13-day exponential average, turning the spotlight back on key Fibonacci supports, seen starting at 0.8549 and stretching down to 0.8520 – the 38.2% retracement of the entire 2015/2020 bull trend.”

“With an existing top in place, we continue to look for an eventual break below here in due course to see a move to the ‘measured top objective’ at 0.8430 and eventually we think the key lows of 2019 and 2020 at 0.8281/39.” 

“Resistance moves to 0.8577/78 initially, with a close above 0.8597 needed to suggest we can see further sideways ranging and a recovery back to 0.8641, then 0.8659/69.”