EUR/GBP to see a deeper recovery on a close above 0.8424 – Credit Suisse

EUR/GBP has surged higher after holding key long-term support at 0.8281/17. A close above 0.8424 today would not only see a base established but also a large bullish “reversal week”, clearing the path to see further gains, economists at Credit Suisse report.

Close above 0.8424 to establish a base and a bullish “reversal week”

“The ggressive rally from key long-term support at 0.8281/17 after the ECB leaves not only a base threatening but also a potential bullish ‘reversal week’. A close above 0.8424 today is needed to confirm, which we would then look to provide the platform for a more sustained recovery. We would then see resistance next at 0.8465/74, then what we expect to be tougher resistance at the 200-day average at 0.8512/16, with a cap expected here at first.” 

“The ‘measured base objective’ is seen at 0.8563.”

“Support is seen at 0.8419 initially, then 0.8404, with 0.8362 ideally holding to see an immediate upside bias maintained.”