EUR / GBP has seen an aggressive rejection of its downtrend since mid-September at 0.9123 to complete a larger bearish “outside day”, Credit Suisse analysts note. They expect this to finally clear the way for a more sustained decline to 0.8982.
Key statements:
The unclear tone remains as EUR / GBP quickly reversed strength on Tuesday after being rejected from its mid-September downtrend, now at 0.9123 to complete a larger bearish ‘outside day’ and close below the 55-day average “.
“We expect the pair to finally clear the way for a more sustained decline to 0.8982 then the 50% retracement of the uptrend since late April, ahead of 0.8956 and then more important support at the low of the trend channel. at 0.8930 / 29, where we would expect new buyers to appear. ”
“In a broader perspective, below 0.8874 / 64 would mark a more relevant peak.”
“Resistance is initially seen at 0.9049, with 0.9074 / 78 now ideally capped to hold immediate downside risk. Upstairs, it could regain strength to retest 0.9123 / 31 “.
Credits: Forex Street
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