EUR / GBP remains on the defensive, around 0.9030. A clear break of 0.9026 / 05 should allow weakness to accelerate sharply, with the next support at 0.8934 in its sights, the Credit Suisse team of analysts note.
Key statements:
“With the short-term downtrend of mid-September still intact, today at 0.9104 / 10 and with the EUR TWI (trade adjusted exchange rate) confirming a top in absolute terms, our overall bias is still sloping down by now”.
“Support is seen at 0.9034 initially, then 0.9005, below which the way can be cleared for a move to 0.8982, then the 50% retracement of the uptrend since the end of April, ahead of 0.8956 and then a more important support from the low of the trend channel at 0.8934, where we would expect new buyers to appear. ”
“In a broader perspective, below 0.8866 / 64 would mark a more important peak.”
“Resistance is seen at 0.9094 initially, with 0.9110 / 23 now ideally as a limit to keep immediate downside risk. Upstairs, it could gain traction for a return to test 0.9165 / 69, but with a break above here needed to mark a near-term bottom. ”
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Credits: Forex Street
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