GBP/USD strength is set to stay capped at 1.3755/65 for a retest of key range support at 1.3601/1.3567. Below here would complete a large bearish “triangle” continuation pattern, economists at Credit Suisse report.
Key support stays seen starting at 1.3601 and stretching down to 1.3571/67
“We continue to look for the 13-day exponential average and price resistance at 1.3755/65 to try and cap further strength with support seen at 1.3694/90 initially, ahead of 1.3633 and then 1.3609/01.”
“An eventual move below 1.3571/67 would resolve the range lower for the completion of a bearish “triangle” continuation pattern. We would then look for a more meaningful decline with support seen initially at 1.3520/15, the December 2019 high, then the ‘neckline’ to the 2019/2020 base at 1.3451/36.”
“Big picture, we would see scope for an eventual fall to a cluster of supports including the 38.2% retracement of the entire 2020/2021 bull trend at 1.3189/35.”
“Above 1.3765 can see a deeper recovery to the 55-day average and further price resistance at 1.3792/1.3814, but with fresh sellers expected to show here.”
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