GBP/USD maintains a bearish “reversal day”, raising the prospect of further weakness in the sideways range of the past three months with a break below 1.4091 needed to mark a near-term top, as reported by Credit Suisse.
The trend is likely to stay sideways for now
“Support moves to 1.4112 initially, then more importantly at the 1.4091 recent low. Beneath here would see a small top complete to clear the way for a deeper setback to the March/May base at 1.4017/06. We would now see scope for a move below here to the uptrend from March 2020 at 1.3982/77, potentially even the 55-day average at 1.3942, but with this level expected to prove a better floor.”
“Resistance stays seen at 1.4184/92 initially, above which can clear the way for a move back to 1.4213, then a retest of 1.4238/49. Beyond this latter area remains needed to negate the ‘reversal day’ and reassert the broader uptrend for a move into our 1.4302/77 first core objective zone.”
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