Credit Suisse discusses EUR/GBP technical outlook and sees a scope for a base above 0.8865 with a “measured base objective” at 0.9057.
"EURGBP has seen a more impulsive move higher, breaking above .8816 for a fresh challenge on key resistance from the top of the range at .8861/65 – the highs seen in April and 23.6% retracement of the March/April fall.
With daily MACD momentum having turned higher (c.f. lower panel right) we look for a clear break above here to see a base complete to mark a more important and sustained turn higher, with resistance them seen next at .8976/94 – the 38.2% retracement and “neckline” to the March top. Whilst we would expect this to cap at first, we would look for a break in due course with the “measured base objective” seen at .9057," CS notes.
Support is seen at .8808 initially, then .8793, with .8759/51 now ideally holding to keep the immediate risk higher. Below .8741 though is needed for a retest of the range lows," CS adds.