What is the outlook towards EUR/GBP in the near-term?
Credit Suisse maintains a bearish bias on EUR/GBP in the near-term.
“EURGBP maintains a small base above the downtrend from September and mid -November high around .9001/07 but even though further near -term strength is still seen likely, our bias remains to view this phase as temporary ahead of an eventual fall back to retest .8866/61. Below .9890 should see the base neutralized for a fall back towards .8929, with this seen as the barrier to a retest of .8666/61, an eventual break of which can confirm a major top,” CS notes.
“Support at .8990 needs to hold to keep the immediate risk higher with resistance above .9085/91 seen at .9127 next – the 61.8% retracement of the September/November fall – then the “measured base objective” at .9150. With the October high just above at .9165, we would look for a fresh and important cap here,” CS adds.
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