Credit Suisse discusses EUR/GBP technical outlook and maintains a bullish bias over the coming weeks, while flagging the scope for a short-term pullback in the near-term.
"EURGBP maintains its break above key resistance from the June high and 61.8% retracement of the March/April fall at .9178/84, but with strength capped at the top of the uptrend channel from April as expected, today seen at .9297. Whilst our broader risk stays higher we continue to look for this to cap for now a pullback to the strength of last week. Beneath support at .9208 can add weight to this view for a setback with support seen at .9191 initially, then .9180/78, with .9132/29 ideally holding on the downside – the 38.2% retracement of the September rally," CS notes.
"Post a pullback we look for a move above .9297 to confirm we have seen a more meaningfully turn higher with resistance next at the 78.6% retracement at .9323 and then more importantly at .9488/.9520, which includes the .9501 high for the year," CS adds.