EUR/GBP to gain bearish traction below 0.9071/61 – Credit Suisse

The EUR/GBP pair below 0.9071/61 can reassert a bearish tone again for a retest of key price and 200-day average support at 0.8988/82, analysts at Credit Suisse apprise.

Key quotes

“EUR/GBP remains capped at the recent high at 0.9230 and the subsequent setback from here maintains a broader choppy range. Immediate support stays seen at the lower end of the price gap from the beginning of the week and price support at 0.9071/61.” 

“Below 0.9071/61 is needed to clear the way for a retest of the recent lows and 200-day average at 0.8988/82, but with a break below here needed to rekindle thoughts we are seeing the formation of the ‘right shoulder’ to a larger top and a test of medium-term support at 0.8871/61.” 

“Resistance stays seen at 0.9188 initially, then 0.9318, but with a break above 0.9230 still needed to end any lingering thoughts of a potential top to clear the way for a move to test the more important September high at 0.9292, where we would expect to see fresh sellers to maintain the sideways range.”