EUR/GBP: Closing break above 0.8899/8904 to turn the short-term risks higher again – Credit Suisse

EUR/GBP is trying to break out above the top of its range at 0.8896/8904, which would open up a move to 0.8993 next, economists at Credit Suisse report.

Break below 0.8800 to signal a false breakout attempt

“A clear and closing break above key resistance at the recent high and 50% retracement of the fall from September at 0.8899/8904 would rekindle thoughts of a basing process, with resistance then seen next at 0.8993/9006, which is the 61.8% retracement of the fall from September, then 0.9066, which is a key price high.” 

“Key support moves to 0.8904/8899, then 0.8880. Below here would signal a false breakout attempt, with more important support then seen all the way back at the 55DMA and price support at 0.8742/15. Only a break below here would turn the risks lower within the range.”