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EUR/GBP has stabilized above its 21-day average at 0.9085/79 and analysts at Credit Suisse view weakness as corrective ahead of a move back to 0.9292.

Key quotes

“EUR/GBP has found support as expected from the 21-day exponential average and 50% retracement of the September rally at 0.9089/79 and although we would still not rule out an overshoot to the 55-day average at 0.9041, our bias remains to look for a fresh floor here for a resumption of the core uptrend.”

“Resistance is seen at 0.9172/82 initially, with a break above 0.9209 needed to see the risk turn higher again for strength back to the recent high and top of the trend channel from late April at 0.9292 and 0.9307 respectively.” 

“Immediate support moves to 0.9114, with 0.9085/77 now ideally holding. Below can see weakness extend to the 55-day average at 0.9041/34, but with a close below here needed to suggest the broader trend has turned sideways again with support then seen next at 0.8967/56 and more importantly at 0.8894/87.”