EUR/GBP to confirm a bull triangle above 0.9056 – Credit Suisse

EUR/GBP looks close to confirming a bull ‘triangle’, which would be completed on a break above the 0.9056/57 level, per Credit Suisse. Commerzbank sets the same target for the pair.

Key quotes of Credit Suisse

“EUR/GBP saw a stronger session yesterday after holding support from its rising 21-day exponential average for a break above near-term price resistance at 0.9025/28, but with strength then capped just shy of the April/May “measured base objective” and May at 0.9056/57.” 

“Above 0.9056, which we look for, is needed to confirm a bull ‘triangle’ and resumption of the uptrend from March with resistance then seen next at the 50% retracement of the March/April fall at 0.9086 and eventually at the 61.8% retracement at 0.9184.”

“Near-term support moves to 0.8991, then 0.8970, with 0.8938 now ideally holding to keep the immediate risk higher. Below would warn of further sideways ranging and a retreat back to 0.8909.”