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The EUR/GBP pair has confirmed a large bearish “head & shoulders” top below 0.8861, turning the core trend lower for an eventual fall to 0.8609, the Credit Suisse analyst team briefs.

Key quotes

“EUR/GBP maintains its large ‘head & shoulders’ top below medium-term support at 0.8871/61, the key series of price and highs lows seen through 2020 and with resistance from the 13-day exponential average still capping, now seen at 0.8862, we continue to look for a more significant turn lower.” 

“Support is seen at 0.8795/91, below which should clear the way for a move to 0.8700 ahead of the April 2020 low at 0.8671. Whilst this latter support should be allowed to hold at first, below in due course should see a move to the ‘neckline’ to the late 2019/early 2020 base at 0.8609.”

“Resistance moves to 0.8837 initially, with 0.8862 now ideally capping to keep the immediate risk lower. Above 0.8885 though is needed to raise the prospect of some near-term ranging.”