EUR/GBP: Temporary setback ahead of another leg higher towards 200-DMA at 0.8515 – Credit Suisse

EUR/GBP holds a base and a bullish “reversal week”. Analysts at Credit Suisse view the setback as temporary ahead of further strength to the 200-day moving average (DMA) at 0.8515.

Key support seen at 0.8362

“With a base and a large bullish ‘reversal week’ established following the successful defense of key long-term support at 0.8281/17, this is seen as a temporary pullback for now ahead of a fresh move higher to retest 0.8471/80. Beyond here can then clear the way for a test of what we expect to be tougher resistance at the 200-DMA at 0.8512/15, with a cap expected here at first. 

“Support is seen at the 0.8412/04 initially, then 0.8394, with 0.8362 ideally holding to see an immediate upside bias maintained.”