EUR/GBP to complete a top below key support at 0.8925 – Credit Suisse

EUR/GBP continues to pressure key supports at 0.8937/25, below which would complete a top to signal a move to 0.8865 initially, economists at Credit Suisse apprise.

Key quotes

“EUR/GBP posted a neutral session on Thursday, holding above key support at the range lows and 50% retracement support at 0.8937/25, however, we maintain our downward bias as the market continues to hold below the 13 and 55-day averages, never mind price resistance at 0.9072.” 

“A break below 0.8937/25 would still see a top established to warn of a more meaningful turn lower, with support seen next at 0.8909 and then more importantly at 0.8866/64 – the highs of April and lows of June and also the 61.8% retracement of the April/June rally – which we would expect to hold at first.” 

“Near-term resistance at 0.8991 now ideally holds. In contrast, above 0.9045 would reinforce the sideways range and lessen the threat of a top for now, but with a break above 0.9070/72 needed to see the ‘outside day’ negated and the risk turn higher again.”