EUR/GBP to soar towards 0.8861/76 on a break above key resistance at 0.8722/47 – Credit Suisse

EUR/GBP is edging lower over the past few sessions, breaking the uptrend from April. Nonetheless, economists at Credit Suisse look for an eventual rise to the “neckline” to the 2020 top at 0.8861/76.

First support moves to 0.8524/11

“We stay biased higher over the next 2-4 weeks, with key resistance remaining at the recent and April 2021 high at 0.8722, with the 50% retracement of the fall from September 2020 at 0.8747. Beyond here in due course should then add weight to our view that a broader basing process is underway, with resistance seen next at the ‘neckline’ to the 2020 top and 61.8% retracement at 0.8861/76.”

“Next key support moves to 0.8524/11, which coincides with the rising 55-day average, which we would look to hold if reached to maintain our 2-4 week positive outlook.”