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EUR/GBP to see a test of resistance at the 200-DMA of 0.8515 – Credit Suisse

Analysts at Credit Suisse continue to see further signs of EUR strength with the EUR/GBP surging higher. The pair is expected to enjoy a more sustained recovery towards the 200-day moving average (DMA) at 0.8512/15.

Initial support located at 0.8424/22

“EUR/GBP has surged higher following its successful defense of key long-term support at 0.8281/17 and a base and large bullish ‘reversal week’ have been established. We look for this to provide the platform for a more sustained recovery with resistance seen initially at 0.8471/80, then what we expect to be tougher resistance at the 200-DMA at 0.8512/15, with a cap expected here at first.” 

“Support is seen at the ‘neckline’ to the base at 0.8424/22 initially, then 0.8404, with 0.8362 ideally holding to see an immediate upside bias maintained.”

 

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