EUR/GBP remains on the back foot, around 0.9030, down 0.46% intraday, and a clear break of 0.9026/05 should allow weakness to accelerate sharply, with next support at 0.8934, as the Credit Suisse analyst team notes.
Key quotes
“With the short-term downtrend from mid-September still intact, today seen at 0.9104/10 and with the EUR TWI Itself now confirming a top in outright terms, our overall bias still leans lower for now.”
“Support is seen at 0.9034 initially, then 0.9005, below which can clear the way for a move to 0.8982 next, the 50% retracement of the uptrend from late April, ahead of 0.8956 and then more important support from the trend channel low at 0.8934, where we would expect fresh buyers to show.”
“Bigger picture, below 0.8866/64 remains needed to mark a more important top.”
“Resistance is seen at 0.9094 initially, with 0.9110/23 now ideally capping to keep the immediate risk lower. Above can see strength back to retest 0.9165/69, but with a break above here needed to mark a near-term base.”
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