EUR / GBP reversed sharply higher this week from a Fibonacci support zone at 0.8543 / 20, Credit Suisse analysts say. They see that there is room for a more significant recovery to 0.8793 / 0.8809.
Immediate resistance is seen at 0.8756 and then the 38.2% retracement of the decline from the December / early February highs at 0.8793 / 0.8809. Our bias is that this latest resistance ideally limits, for an eventual resumption of the downtrend. Above 0.8809, however it is possible to extend to 0.8841 “.
“Support moves to 0.8685 / 75 initially, below which a drop back to 0.8627 / 17 can be seen. A level below 0.8596 is needed to suggest that the correction may already be over to return to 0.8549 / 42, and then to 0.8520 “.