EUR/GBP has started to pierce trend support from late 2019 at 0.8473/72. Analysts at Credit Suisse expect the pair to retest the YTD low and channel bottom at 0.8449/37.
“Beneath 0.8472 should clear the way for a move beneath for a move back to the YTD low and lower end of the gentle seven-month downtrend channel at 0.8449/37.
Whilst we would again look for a fresh hold at 0.8449/37 and swing higher in the channel, a sustained move below 0.8437 would mark an acceleration in the downtrend, then exposing the key lows of 2019 and 2020 at 0.8281/39.”
“Resistance moves to 0.8500/02 initially. Above 0.8528 can see a recovery back to 0.8542/47, potentially a retest of the 200-day average at 0.8620/25.”