EUR/GBP: Key support seen at the 0.8937 July low – Credit Suisse

EUR/GBP has seen a decisive rejection of resistance at 0.9072 for the completion of a bearish “outside day” to rekindle thoughts of a topping process, with key support seen at the 0.8937 low of July, beneath which would see a top established, economists at Credit Suisse report.

Key quotes

“EUR/GBP has seen a fresh and decisive rejection of resistance at 0.9072 and the subsequent decline has seen a large bearish ‘outside day’ established to rekindle thoughts of a top. Key remains the 0.8937 July low, removal of which is needed to see a top confirmed to warn of a more meaningful turn lower.” 

“Below 0.8937 we would see support next at 0.8909 and then more importantly at 0.8866/64 – the highs of April and lows of June and also the 61.8% retracement of the April/June rally – which we would expect to hold at first. Beneath in due course though can eventually expose the 200-day average at 0.8764.” 

“Resistance is seen at 0.9001/03 initially, with the immediate risk seen stating lower whilst below 0.9033. Above 0.9070/72 is needed to see the ‘outside day’ negated and the risk turn higher.”