The GBP/USD pair has broken below its recent low of 1.3786, implying additional range weakening. According to the Credit Suisse analyst team, the next support is seen at the more crucial 1.3369/48 zone, which is a major medium-term inflection point.
“We expect a move to minor support around 1.3717 next, followed by a move to the more crucial April low, 200-day average, and 38.2 percent retracement of the rise from September last year at 1.3669/48, where we would look for a more major floor.”
“It’s worth noting that a break below 1.3669/48 would complete a significant ‘double top,’ but this is currently considered a risky scenario. It’s worth noting, however, that the next significant support is at 1.3579/67.”
“Short-term resistance has moved to 1.3873/86, where it currently ideally caps to keep short-term negative pressure in place. A close over 1.4000/07, on the other hand, would indicate that the brunt of the sell-off has ended, reinforcing the larger sideways range.”/n
