According to Credit Suisse analysts, GBP/USD is holding a bearish “outside day,” putting the cable at risk of falling back to 1.3734, then more significant support at 1.3669/48.
“Below Friday’s low of 1.3734, we expect a test of further crucial support around 1.3669/48, which represents the April low, a 38.2 percent retracement of the September rebound, and the rising 200-day average. Here, we’d seek for a new and, ideally, crucial floor.”
“A large ‘double top’ below 1.3648 would signal a more significant change in trend lower, with support at 1.35667, then the top ‘neckline’ to the longer-term base at 1.3514.”
“The immediate risk is seen staying down while below 1.3865/99, with resistance initially expected at 1.3816, then 1.3734. However, a recovery bias for a move back to 1.4000/10 can be reasserted above.”/n
