GBP/USD weakness was well supported on Friday, holding high level price support at 1.2568/66. The immediate risk stays seen higher for a test of key resistance from the 200-day average at 1.2701, analysts at Credit Suisse apprise.
Key quotes
“Immediate resistance remains seen at 1.2681/88, above which and we then see the 200-day average at 1.2701. Whilst we would expect fresh sellers here, a break can expose the downtrend from late last year, currently seen at 1.2737, with the ‘measured base objective’ seen at 1.2808. With the June high and 78.6% retracement of the decline from late last year just above at 1.2813/17, we would expect fresh sellers here.”
“Support moves to 1.2621 initially, with a break below 1.2566 needed to rekindle thoughts of a pullback with support next at the 13-day average at 1.2542, then the ‘neckline’ to the base and 38.2% retracement of the rally from late June at 1.2519/09.”
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