The upward trend of GBP/USD continues to lose momentum, and Credit Suisse economists expect a test and then break of key uptrend support at 1.2594.
Immediate risk shifts to the downside
The weekly RSI is unable to confirm the new highs and the daily MACD is turning lower, so we believe the immediate risk is to the downside.
Key support is the uptrend since September last year and last week’s low at 1.2594/90, below which bearish pressure should build to next test the 55 DMA, currently at 1.2542. A close below this level would expose the 1.2485 level.
Resistance is initially at 1.2729, and a break above 1.2761 would be needed to ease the immediate downside bias and return to 1.2843/50. A break above this level could clear the way to the downside. Above this level would clear the way to reach 1.2894/1.2900 and then what looks to be tougher resistance at the March/April 2022 lows at 1.2973/1.3000.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
