Despite Friday’s recovery, GBP / USD remains in a bearish configuration, Credit Suisse analysts say. They continue to see the possibility of a pullback to retest the March / May base at 1.4017 / 06.
Key statements:
“A clear break of 1.4082 / 77 would confirm a top to clear the way for a deeper setback to the neckline of the March / May base at 1.4017 / 06”.
“We now see room for a move below 1.4017 / 06 towards the uptrend since March 2020 at 1.3998, potentially even the 55-day average at 1.3952 / 42, but this level is expected to be a stronger floor. Instead, if a breakout were to be observed with a close, this would suggest that the March / May base has been negated, reaffirming a wider lateral range. “
“Resistance initially moves at 1.4171 / 76, and immediate risk still looks bearish below 1.4201 / 03. A breakthrough above here is still necessary to ease the threat of further corrective weakness, and would point to a retest of the 1.4238 / 49 highs.
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