EUR/GBP: Support at 0.8888/78 ideally holds with resistance seen at 0.9057 – Credit Suisse

EUR/GBP has held key support at 0.8875 as expected to maintain its base and economists at Credit Suisse stay biased higher with the “measured base objective” at 0.9057. 

See: EUR/GBP set to move above 0.90 – Danske Bank

Key quotes

“We look for a clear break above a cluster of key resistances at 0.8976/94 (including the 38.2% retracement of the March/April fall and ‘neckline’ to the March top) with the ‘measured base objective’ then at 0.9057. Although a pullback from here should be allowed for, we look for a break in due course with resistance next at the 50% retracement of the fall from March at 0.9086 and eventually the 61.8% retracement at 0.9184.” 

“Support moves to 0.8931 initially, then the 13-day average at 0.8916. Beneath 0.8888/78 is now needed to warn of a potentially more important topside failure with support then seen next at 0.8826 ahead of the uptrend from March at 0.8821.”