EUR/GBP has broken below the lower end of the gentle seven-month downtrend channel and prior low for the year at 0.8449/37. This suggests the downtrend is accelerating for a test of the key lows of 2019 and 2020 at 0.8281/39, the Credit Suisse analyst team reports.

Resistance is seen at 0.8515/20

“We are now seeing an acceleration in the downtrend and we look for the risk to stay directly lower. Support is seen next at 0.8417 ahead of 0.8355 and then 0.8332 and then eventually and more importantly the key lows of 2019 and 2020 at 0.8281/39.”

“Whilst we would look for an attempt to hold at the key lows of 2019 and 2020 at 0.8281/39, a sustained break below would mark the completion of a large and important top.”

“Resistance moves to 0.8446/54 initially, with the immediate risk seen lower whilst below 0.8489. Above can see a recovery back 0.8500/02, potentially 0.8515/20, but with this now ideally capping further strength.”