EUR / GBP rallied above 0.8900 again after briefly falling below that level. Credit Suisse analysts believe that in the short term, the pair may retest the mid-term support at 0.8871 / 61 (key 2020 lows).
“EUR / GBP remains under pressure after failing to break through the 0.9096 resistance and we still believe it may form a right shoulder towards a higher top. Indeed, the pair easily picked up support at 0.8931 / 29, and could then test 0.8871 / 61 (key 2020 lows).
Ultimately, the mid-term support at 0.8871 / 61 must be overcome for the pair to continue falling. Support is seen initially at the April 2020 low at 0.8671, then at 0.8609 (the bottom neckline of late 2019 – early 2020).
Short-term resistance is moving towards 0.8935 / 43, with 0.9000 level limiting upside, increasing immediate downside risk. These levels could increase the likelihood of further range trading and a return to 0.9031 / 38 ”.