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GBP/USD risk looks to be already shifting lower again and below 1.3750 would warn of a retest of key support from the March low at 1.3670/63, the Credit Suisse analyst team reports.

Sterling’s rebound already looks to be fading

“Support remains seen at 1.3750 initially, below which can see the base negated to clear the way for a fall back to 1.3695, then more likely a retest of the March low at 1.3670/63.”  

“Beneath the March low at 1.3670/63 would see the broader risk turn lower again with support then seen next at the 38.2% retracement of the rally from last September at 1.3641, then 1.3567. Whilst we would expect a hold here at first, below in due course can see a move back to the ‘neckline’ to the long-term base, potentially 1.3458/52.”  

“Above 1.3809 is needed to rekindle thoughts of a base for a test of the 55-day average, price resistance and potential downtrend at 1.3823/46, with fresh sellers expected here. Above though can see strength extend back to 1.3919 above which is needed to see a ‘double bottom’ base complete to reinforce our view the decline from the 1.4237 late February peak remains a corrective phase only within the core longer-term uptrend.”