EUR/GBP needs to close below its 55-day average at 0.9057 to see bearish pressure increase to add weight to the bias of the Credit Suisse analyst team for a stronger GBP. As of writing, the pair rises to 0.9077, up 0.17% intraday on the day.
“EUR/GBP remains capped at its short-term downtrend and recent highs at 0.9148/58, but continues to hold support on a closing basis from its 55-day average, now at 0.9057. A closing break below here remains needed to see a more concerted move lower within the broader uptrend with support seen next at 0.9026/23, below which can see the 50% retracement of the April/September rally and potentially all the way to the lower end of the channel at 0.8912/08.
“Resistance is seen at 0.9125/28 initially, then 0.9148/58. Above here can see the downtrend break for a test of 0.9220/27, but with a break above here needed to suggest the broader uptrend has resumed for strength back to the 0.9292 recent high, with the top of the trend channel from late April now seen at 0.9325.”
Credit: FX Street