EUR/GBP turns lower again toward the 0.8450 mark – Credit Suisse

EUR/GBP has completed a bearish “reversal week” to reassert a negative bias again. Economists at Credit Suisse look for a fall back to the lower end of the trend channel that has been in place from late February and current cycle lows at 0.8450/43.

A bearish “reversal week” sees the risk turn lower

“EUR/GBP closed last week below price support at 0.8561 and this has seen a bearish ‘reversal week’ established and with the market also below its 13-day exponential average and 55-day simple averages this should reassert a broader negative bias again.” 

“We maintain an immediate bearish bias with support seen at 0.8505/01 initially, then the lower end of the trend channel that has been in place from late February and current cycle low at 0.8450/43, with a fresh hold here expected for now.” 

“Resistance is seen at 0.8551 initially, above which can ease the immediate downside bias for a recovery back to 0.8591. Above here though is needed to clear the way for a move back to the 0.8610/15 highs of last week.”