EUR/GBP to drop substantially towards the 0.8181/39 support zone – Credit Suisse

EUR/GBP extends its aggressive rejection from its 200-day average at 0.8575 for a move to a new low for the year. Analysts at Credit Suisse look for a test of long-term support at the 2019 and 2020 lows at 0.8281/39. 

Resistance at 0.8463/68 set to cap

“EUR/GBP keeps the immediate risk lower for a test of 0.8339/32 next and eventually pivotal long-term support from the 2019 and 2020 lows and the 50% retracement of the upmove from 2015 at 0.8281/39.”

“Whilst we would look for a fresh hold at 0.8281/39, for now, an eventual break would see a multi-year top established to open the door to what we believe would be a significant fall, with support then seen next and initially at 0.8118.” 

“Near-term resistance remains at 0.8430/38, above which can ease the immediate downside bias for a recovery back to the 13-day exponential average and price resistance at 0.8463/68, but with fresh sellers expected to show here.”

See: EUR/GBP to race higher towards 0.88 if Article 16 is triggered – Nordea