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EUR/GBP has recovered strongly after reversing its albeit brief move below the bottom of its April range at 0.8688/81 and is now back above its 13, 55 and 200-day averages, per Credit Suisse.

Key quotes

“Daily MACD momentum looks to be seeing a bullish cross and we remain of the view the decline is exhausted and we look for a fresh attempt to establish a base.” 

“Key resistance remains at 0.8863/67 – the recent highs and 23.6% retracement of the March/April fall. Above here stays needed to see a base confirmed to mark a more important turn higher, with resistance then seen next at 0.8928, then the 38.2% retracement and ‘neckline’ to the March top at 0.8976/94.” 

“Support moves to 0.8778/75 initially, with 0.8757/43 now ideally holding to keep the immediate risk higher.”