GBP/USD has seen a break below 1.3734. Therefore, cable is set to test medium-term support seen starting at the 200-day average at 1.3697 and stretching down to 1.3669/48 – the April low and 38.2% retracement of the rally from September, as reported by the Credit Suisse analyst team.
Resistance moves to 1.3801/05
“Below 1.3742/34, GBP/USD can resolve the range lower for a test of more important medium-term support seen starting at the 200-day average at 1.3697 and stretching down to 1.3669/48 – the April low and 38.2% retracement of the rally from last September.”
“Whilst we would expect fresh buyers at the 1.3669/48 region, failure to hold would instead mark a major top and change of trend lower with support then seen next at 1.3567, then 1.3514.”
“Resistance is seen at 1.3801/05 initially, above which can see a move back to the high from Friday and 21-day exponential average at 1.3863.”
“A close back above 1.3863 is needed to ease the immediate downside bias, with resistance then seen next at the top of the near-term range at 1.3906/13.”
