EUR/GBP to enjoy a considerable gain towards 0.8761 – Credit Suisse

The EUR/GBP pair maintains a base above 0.8643/65 as well as a bullish “reversal week” and analysts at Credit Suisse look for a deeper recovery to 0.8732 initially, then 0.8851/61.

Support remains at 0.8640/39 

“We stay biased higher and look for a move to 0.8732 next, then the 38.2% retracement at 0.8761.”

“Big picture, we would not rule out a move back to the ‘neckline’ to the medium-term top and 50% retracement at 0.8851/61, but with this expected to prove a much tougher barrier.” 

“Support moves to 0.8684 initially, then 0.8668 with 0.8640/39 ideally holding to maintain an immediate upside bias. Below 0.8626/21 though is needed to suggest the base has been negated for a retreat back to 0.8578, but with fresh buyers expected here for the time being.”