GBP/USD has again rejected resistance at 1.3310/19 – the 78.6% retracement of the fall from September – to raise the prospect of further sideways ranging for now with support seen at 1.3172/62, economists at Credit Suisse report.
Key quotes
“Near-term support is seen at 1.3204, then 1.3193, with the 13 -day average and price support at 1.3172/62 now ideally holding for a retest of 1.3310/19. Below 1.3162 though can see a deeper fall back to 1.3127, but with a break below 1.3106 needed to warn of a near-term in -range top ad a fall back to the uptrend support at 1.2942.”
“Resistance is seen at 1.3263 initially. Above 1.3310/19 can add weight to our view as we first highlighted in late September that we are in the process of forming the potential ‘right-hand shoulder’ to a major basing process for a move to 1.3403/09 next and eventually back to long -term price and ‘neckline’ resistance at 1.3472/1.3514. Above here, which we eventually look for is needed to see a major base secured, clearing the way for a move above 1.4300.”
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