EUR/GBP to build a bullish triangle pattern above 0.9056 – Credit Suisse

Analysts at Credit Suisse see the broader bias on balance higher as the EUR/GBP pair may be forming a potential bull ‘triangle’ with a break above 0.9056/57 needed to confirm it.

Key quotes

“Resistance is seen at 0.8997 initially, then 0.9025/28, above which should clear the way for a move back to the recent high and ‘measured base objective’ at 0.9056/57. Above here is needed to confirm a bull ‘triangle’ and resumption of the uptrend from March with resistance then seen next at the 50% retracement of the March/April fall at 0.9086 and eventually at the 61.8% retracement at 0.9184.” 

“Near-term support remains at 0.8950/40. Below 0.8909 would warn of a retest of key support at 0.8866/64. Only a clear and sustained move below here though would warn of a top and an important break lower.”