The rebound in GBP/USD has been capped at a cluster of resistances including its 200-day average (DMA) at 1.3802. The subsequent completion of a bearish “reversal day” is expected to clear the way for a retest of key support at 1.3571/67, the Credit Suisse analyst team reports.
See – GBP/USD: The 1.40 level is out of sight – Rabobank
Resistance at 1.3769/71 now caps
“We think the recent strength has been corrective only. Indeed, below support at 1.3693, GBP/USD has seen a minor top complete and we look for a fall back to the recent low and potential trend support at 1.3608/01.”
“Bigger picture, key support remains seen at the July low and 23.6% retracement of the entire 2020/2021 uptrend at 1.3571/67 removal of which can establish a major top with support then seen next at 1.3520/14.”
“Near-term resistance moves to 1.3712, then 1.3736, with 1.3769/71 ideally now capping to keep the immediate risk lower. Above can see a move back to the 200-DMA at 1.3802 but with the 55-DMA now also not far above here at 1.3835, fresh sellers would be expected here.”
