Credit Suisse FX Technical Strategy Research notes that EUR/GBP has seen a strong rally since April this year and has reinforced a large base set above .8852 to achieve the next target at the November 2016 high at .9050.
"The extension above here keeps the risks directly higher for the 78.6% retracement of the October/December 2016 fall at .9142/68 next. Above here would see a price vacuum until our core target at .9400/14 – the measured objective from the base, and the October 2009/2016 spike highs.
We would look for a ceiling to be found here and above here is required to see a move on to the March 2009 high at .9482, then the January 2009 peak at .9649, ahead of the all-time record high at .9803," CS projects.
Source: Credit Suisse Global Fixed Income ResearchOriginal Article
