EUR/GBP to enjoy a deeper recovery towards the 0.87 area – Credit Suisse

EUR/GBP maintains its recovery and an immediate upside bias. Economists at Credit Suisse see scope for a move back to the upper end of the channel at 0.8671/0.8703.

Support at 0.8542/37 to hold

“Resistance is seen at 0.8595 initially, above which should neutralize the recent ‘outside day’ for strength to 0.8671 and then the top of the range, seen starting at 0.8700/03, also the location of the falling long-term 200-day average. We would look for a fresh top here.” 

“A close above 0.8703 would be the first sign we may be seeing a more important turn higher.” 

“Support is seen at 0.8562 initially, with a break below 0.8542/37 needed to see the risk turn lower again in the range for a fall back to 0.8505/01, with the lower end of the trend channel and current cycle low at 0.8449/46.”