EUR/GBP: Scope for a recovery to 0.8793/0.8809 – Credit Suisse

EUR/GBP has reversed sharply higher from a cluster of Fibonacci supports at 0.8543/20 and analysts at Credit Suisse see scope for a deeper recovery to 0.8793/0.8809, but with a fresh cap expected here. 

Key quotes

“Immediate resistance is seen at 0.8756 and then the 38.2% retracement of the fall from December and early February highs at 0.8793/0.8809. Our bias is for this latter resistance to then ideally cap for an eventual resumption of the bear trend. Above 0.8809 though can see strength extend further to 0.8841.” 

“Support moves to 0.8685/75 initially, below which can see a fall back to 0.8627/17. Below 0.8596 is needed to suggest the correction may already be over for a move back to 0.8549/42, then 0.8520.”