EUR/GBP: Support at 0.8530/11 to hold for a retest of key resistance at 0.8722/47 – Credit Suisse

EUR/GBP is set to hold support at 0.8530/11 for a retest and break above 0.8722/47. What’s more, analysts at Credit Suisse expect the pair to enjoy an eventual rise toward the “neckline” to the 2020 top at 0.8861/76.

Broader basing process stays seen as underway 

“We continue to view weakness as corrective. Above 0.8638/45 can add weight to our view for strength back to 0.8671/73, ahead of a retest of 0.8722/47. Beyond here in due course should then add weight to our view a broader basing process is underway with resistance seen next at the ‘neckline’ to the 2020 top and 61.8% retracement at 0.8861/76.” 

“Below 0.8511 would see the uptrend break, but only below 0.8489/81 though would be seen to suggest the broader trend is shifting neutral again, with support seen next at 0.8457/43.”