EUR/GBP has extended its sharp recovery to turn the spotlight back on the important 200-day moving average (DMA) at 0.8450. Analysts at Credit Suisse only see the pair marking a more important turn higher on a sustained close above this mark.

Further near-term strength in the broader sideways range

“A sustained hold above 200-DMA at 0.8450 is needed to rekindle thoughts of a potential base, with resistance seen next at the March high at 0.8514/23. Only a close above this latter area though would see a base established to raise the prospect of a more significant turn higher, with resistance then seen next at the December 2021 high at 0.8601.” 

“Support is seen at 0.8383 initially, then the 55-DMA at 0.8359, which we look to try and hold. Below 0.8311/10 though is needed to ease the immediate upside bias for a fall back to potential trend support at 0.8260.”