EUR/GBP: Sustained break of 0.8402 to trigger a fall towards 0.8281/39 – Credit Suisse

EUR/GBP is extending its aggressive rejection from its 200-day moving average (DMA) at 0.8575. Analysts at Credit Suisse look for a sustained break below 0.8402 for a test of long-term support at the 2019 and 2020 lows at 0.8281/39.

Near-term resistance moves to 0.8438

“EUR/GBP is attempting to remove to the 0.8414/02 lows of October and November. We look for a sustained move below here to open the door to a test of 0.8339/32 next and eventually long-term support from the 2019 and 2020 lows, as well as the 50% retracement of the upmove from 2015 at 0.8281/17. Whilst we would look for a fresh hold here for now, an eventual break would see a multi-year top established.”

“Near-term resistance moves to 0.8438, then 0.8463/68, with 0.8483 now ideally capping to keep the immediate risk lower. Above can see a recovery back to 0.8521/25, but with fresh sellers expected to show here.”