Credit Suisse discusses EUR/GBP technical outlook and adopts a bearish bias in the near-term.
"EURGBP's break of key support at .9000 not only ends the bull “triangle” but also the uptrend from February break as well as the 13-day average and price support removed for the completion of a small “head & shoulders” top. We continue to see the risk lower and look for further weakness to emerge with support seen next at the 55-day average and 50% retracement of the rally from late April at .8925/21. Whilst we would expect this to hold at first, below in due course can see support next and more importantly at .8866/64 – the “neckline” to the April/May base, June lows and 61.8% retracement of the rally from late April," CS notes.
"Resistance is seen initially at the “neckline” to the top at .9001/11, with .9069 needing to cap to see the top maintained and the immediate risk stay lower," CS adds.