EUR / GBP has closed above the key resistance of 0.8643 / 65, which is a bullish sign of continuity, Credit Suisse analysts say. They see EUR / GBP extending the rally towards 0.8732 initially.
“While we would expect to see a weekly close above the key resistance at 0.8643 / 65, our bias is that this is achieved to see an established base to reinforce the recovery. Additionally, a close above 0.8574 today would also see a bullish “reversal week” set to further bolster a recovery story. Then we would look for a move to 0.8732, then the 38.2% retracement at 0.8761 ”.
“The big picture, we would not rule out a move back to the neckline of the mid-term peak at 0.8861.”
“Support is initially at 0.8659, with a break below 0.8526 / 21 now needed to ease the immediate bullish bias for a retracement back to 0.8578, but new buyers are expected here for now.”