EUR/GBP: Break below 0.8588/78 to confirm and important turn lower – Credit Suisse

EUR/GBP has removed support from its 55-day average at 0.8623. Analysts at Credit Suisse look for a clear break of the mid-April lows at 0.8588/77 to confirm a more important turn lower.

The broader trend may be starting to turn lower again

“Beneath the mid-April lows at 0.8588/78, which we look for, should mark a more important failure and turn the risks lower within the broader range, with support seen next at 0.8538/30 and then eventually the 0.8471 low of April. 

“Whilst the 0.8471 low of April should again be respected, our bias would be for a move below here also in due course with support seen at 0.8430 next and eventually and more importantly at 0.8281/39.”

“Resistance moves to 0.8620/23 initially, which we look to try and cap to keep the immediate risk lower. Above can see strength back to 0.8661, potentially 0.8674/78, with 0.8702/03 now ideally capping further strength.”