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EUR/GBP is expected to see an eventual sustained break below the 38.2% retracement of the entire 2015/2020 bull trend at 0.8520, according to the Credit Suisse analyst team.

Key quotes

“With the EUR now holding a large top as looked for we continue to look for an eventual sustained break below the 38.2% retracement of the entire 2015/2020 bull trend at 0.8520 for a fall to the ‘measured objective’ from the 2020 top at 0.8430. Whilst this should be allowed to hold at first, our broader bias would be for an eventual test of long-term support from the 2019 and 2020 low s at 0.8281/39. Removal of here would see a much larger and long-lasting top complete.”  

“Initial resistance is seen at 0.8557, then the 13-day exponential average and price resistance at 0.8565/80, which we look to now ideally cap. Only above 0.8641/46 though would mark a near-term base for a deeper recovery to 0.8659/69 initially.”