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EUR/GBP has again held key Fibonacci supports at 0.8549/20 and with a glaring RSI momentum divergence in place, a near-term base is now seen building, with a break above resistance at 0.8641 needed to confirm, the Credit Suisse Analyst team reports.

Key quotes

“Above the high of last week at 0.8641 is needed to confirm a small base for a deeper recovery to 0.8659/69 initially, then back to what we see as tougher resistance from the late February high and 55-day average at 0.8732/42. We would look for a fresh cap here and a resumption of the broader downmove.”  

“Below 0.8574/69 is needed to clear the way for a fresh look at 0.8535/20. We continue to look for an eventual move below here for the ‘measured top objective’ at 0.8430.”