The GBP / USD rebound has been limited to a group of resistances, including its 200-day average at 1.3802, Credit Suisse analysts explain. They expect a bearish scenario to clear after a “day of reversal” for a retest at key support at 1.3571 / 67.
Key statements:
“We believe the recent strength has only been corrective. In fact, below support at 1.3693, GBP / USD has seen a complete minor top and we are looking for a dip back to the recent low and potential trend support at 1.3608 / 01. “
“In broader terms, key support remains at the July low and the 23.6% retracement of the entire 2020/2021 rally at 1.3571 / 67, which may establish a major top with support later seen below at 1.3520 / 14. “
“Short-term resistance moves to 1.3712, then 1.3736, with 1.3769 / 71 ideally now limiting the rises to maintain immediate downside risk.. Above you can see a shift back to the 200 day average at 1.3802, but with the 55 now also not much above here at 1.3835 where new sellers would be expected. “
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