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EUR/GBP remains above the key 200-day average and price support at 0.8988/82 and is honing in on the key 0.9230 high following sharp strength this morning, analysts at Credit Suisse apprise.

Key quotes

“EUR/GBP again held key support from its recent low and 200-day average at 0.8988/82 last week and with the market gapping higher this morning, a sideways trend has been reinforced, albeit with the immediate risk higher.”

“Key resistance remains seen at the recent high at 0.9230. Above here would end any lingering thoughts of a potential top and clear the way for a likely panicky move to test of the more important September high at 0.9292, where we would expect to see fresh sellers to maintain the sideways range.” 

“Immediate support is seen at 0.9102, then the price gap from this morning at 0.9078/61. Below here is needed to clear the way for a retest of 0.8988/82, but with a break below here needed to rekindle thoughts we are seeing the formation of the ‘right shoulder’ to a larger top.”