EUR/GBP to move downward to test the key 0.8543/20 support zone – Credit Suisse

EUR/GBP is expected to see near-term consolidation above 0.8627/17, but with the broader trend seen lower for a retest of a cluster of Fibonacci supports at 0.8543/20, per Credit Suisse.

Key quotes

“Our ideal roadmap is for further nea -term weakness to 0.8627/17, but with this ideally holding for now for the unfolding of a near-term consolidation phase.” 

“Big picture, we look for a break in due course for a retest of more important Fibonacci support, seen starting at 0.8549 and stretching down to 0.8520 – the 38.2% retracement of the entire 2015/2020 bull trend.” 

“Resistance moves to 0.8673 initially, then 0.8708, with 0.8732/42 now ideally capping. Above can clear the way for a deeper corrective recovery to 0.8793/0.8809, but with a better cap expected here.”