EUR/GBP: Trend to turn lower below 0.8520 toward 2019/2020 lows at 0.8281/39 – Credit Suisse

EUR/GBP spotlight remains firmly on key price support and its uptrend from December 2019 at 0.8530/20. Strategists at Credit Suisse maintain their view for an eventual move below here to complete a large bear “triangle” pattern to mark an important change of trend lower with support then seen at the YTD low at 0.8471.

EUR/GBP below 0.8520 can confirm a large bear “triangle” continuation pattern

“EUR/GBP remains under intense downside pressure with the spotlight firmly on key support from the recent lows and uptrend from December 2019 at 0.8530/20. A close below here, which we continue to look for remains needed to complete a large bearish ‘triangle’ continuation pattern to see the core trend turn lower. We would then see support next at 0.8430 ahead of the 0.8471 low of April.” 

“Big picture, we will look for a move to more important support at the 2019/2020 lows at 0.8281/39, also the ‘measured triangle objective’.”

“Resistance moves to 0.8533/36 initially, with 0.8562/68 now ideally capping to keep the immediate risk lower. Above can see strength back to 0.8600/30, but only above here would see a near-term base complete to ease the pressure off support at 0.8520 and allow a deeper recovery.”