As EUR/GBP briefly moved above 0.9056/57 on Friday, analysts at Credit Suisse are closely watching a clear break above this level to confirm the completion of the bull ‘triangle’ continuation pattern with resistance seen at 0.9086 initially, then 0.9184.
Key quotes
“With daily MACD momentum showing further signs of turning higher we maintain our positive bias and continue to look for a clear and sustained move above 0.9056/57 to confirm a bull ‘triangle’ and resumption of the uptrend from March with resistance then seen next at the 50% retracement of the March/April fall at 0.9086 and eventually at the 61.8% retracement at 0.9184.”
“Near-term support moves to 0.9027 with 0.9006 ideally holding to keep the immediate risk higher. Below would warn of fresh pullback into the prior range with support seen next at 0.8970 and with the 21-day exponential average at 0.8959/57 then ideally holding further weakness.”
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