EUR/GBP: Resistance at 0.9000 caps for a test of medium-term support at 0.8871/61 – Credit Suisse

EUR/GBP is back above the 0.8900 level after it briefly dipped below the big figure. The immediate risk is seen lower for a retest of medium-term support at 0.8871/61, the key series of lows seen through 2020, per Credit Suisse.

Key quotes

“EUR/GBP remains under pressure following its rejection from resistance at 0.9096 and we remain of the view we may be seeing the construction of the ‘right shoulder’ to a larger top. Indeed, further price support at 0.8931/29 has been removed with ease and we look for a retest of medium-term support at 0.8871/61, the key series of lows seen through 2020.” 

“Ultimately, the medium-term support at 0.8871/61 needs to be removed to see a major top established to mark a major turn lower, with support then seen next and initially at the April 2020 low at 0.8671, then 0.8609 – the ‘neckline’ to the late 2019/early 2020 base.” 

“Near-term resistance moves to 0.8935/43, with 0.9000 ideally capping to keep the immediate risk lower. Above can raise the prospect of further range trading and a move back to 0.9031/38.”