EUR/GBP to break below a cluster of key supports at 0.8542/20 – Credit Suisse

EUR/GBP extends its consolidation above key support at .8520 – the 38.2% retracement of the entire 2015/2020 – but with an eventual break expected for a move to 0.8430 next and eventually the 0.8281/39 lows of 2019 and 2020, the Credit Suisse analyst team reports.

Key quotes

“The spotlight is still firmly on key Fibonacci supports, seen starting at 0.8549 and stretching down to 0.8520 – the 38.2% retracement of the entire 2015/2020 bull trend. Although a further hold here should be allowed for, with a large existing top in place we continue to look for an eventual break in due course to see a move to the ‘measured top objective’ at 0.8430 and eventually we think the key lows of 2019 and 2020 at 0.8281/39. 

“Whilst the 0.8281/39 area should clearly be respected, a break would mark the completion of a significantly larger top and more important turn lower.” 

“Resistance remains at 0.8583/87 initially, above which can see a move back to 0.8634, potentially 0.8659/69, but with this then ideally capping.”