EUR/GBP set to advance nicely above key resistance at 0.8618/21 – Credit Suisse

EUR/GBP surged higher yesterday. Economists at Credit Suisse look for a break above key resistance at 0.8618/21 in due course. 

Support at 0.8411 should hold to keep the risks higher

“EUR/GBP is still capped below major resistance at the 38.2% retracement of the September-2020/March-2022 fall and recent high at .8618/21 and is pulling back again this morning. Nevertheless, the pair maintains a large base, weekly MACD is close to confirming a cross into outright bullish territory and medium-term moving averages are now rising, therefore, our bias remains for an eventual closing break, with resistance then seen next at 0.8654/59 and beyond.” 

“First support is seen at 0.8434/26, then the 55-day average just below 0.8411/0.8393, with fresh buyers expected here if reached.”