EUR/GBP: Ideally finds a fresh floor above 0.8609 – Credit Suisse

Despite some recent falls, analysts at Credit Suisse believe the EUR/GBP pair can find a floor and rebound.

Key quotes

“EUR/GBP has fallen sharply after completing a top, but we see support well layered from the 200-day average at 0.8752 down to the ‘neckline’ to its early year base at 0.8609. Our bias is to look for a fresh floor here and for the risk to turn higher again.”

“Above 0.8994 is needed to add weight to this view, for a move back above 0.9300.”

“Below 0.8609 though would suggest weakness can extend further and probably not just as a result of a weaker EUR, but also a stronger GBP, with support next at 0.8340.”