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EUR / GBP falls further to test the 0.8450 support area

  • The euro resumes its downtrend to hit 19-month lows at 0.8450.
  • The pound continues to trade at the Bank of England’s expectations of a rise.
  • A sustained move below 0.8437 would accelerate the downtrend – Credit Suisse.

The EUR It resumed its negative trend against the British pound on Thursday, hitting prices below 0.8470 for the first time since last August, to test 19-month lows at 0.8450, which has so far withstood the pressure.

The pound remains firm before the expectations of adjustment of the BoE

The British pound remains firm, fueled by market expectations of a rate hike from the Bank of England early next year, and will likely tighten further to cope with inflationary pressures. Rising energy prices have pushed annual inflation to levels almost twice the Bank of England’s target for price stability, prompting some Bank officials to admit the possibility of speeding up the policy normalization plan. monetary.

In addition, the European Union’s proposal to remove custom checks for products arriving in Northern Ireland from Britain has allayed fears about another showdown with the Union, which has increased demand for the pound.

EUR / GBP: Failure to meet 0.8437 would accelerate downtrend – Credit Suisse

According to Credit Suisse’s currency analysis team, the 0.8449 / 37 support area is expected to cool down, although they warn of the possibility of an acceleration to the downside if said level breaks: in the channel, a movement sustained by below 0.8437 would mark an acceleration in the downtrend, and then would expose the key lows of 2019 and 2020 at 0.8281 / 39 ”.

Technical levels

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