GBP/USD weakness has stopped at the next key support of the 61.8% retracement of the 2020/2021 uptrend at 1.2494, Credit Suisse analysts note. They see room for a temporary pause here before further weakness at 1.2251.
Key Statements:
“The bias remains to continue looking for a short-term break around the 61.8% retracement of the 2020/2021 uptrend at 1.2500/1.2494, for some consolidation and possibly a short-term tactical rally.”
“With the market clearly remaining below its mid-term moving averages, and with the weekly MACD momentum remaining very strong, we see no reason not to look for a sustained break of 1.2500/2494 in due course, with support seen at the next level at 1.2251, before 1.2072 and then the 78.6% retracement at 1.2017″.
“Resistance is seen at 1.2615 initially, above which a recovery can be seen back to the 38.2% retracement of the most recent phase of the sell-off at 1.2671, potentially the 13-day EMA and resistance at 1.2697 /1.2705, but with sellers expected here to be caught.”
Source: Fx Street
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