GBP/USD has again rejected the 1.4238/46 highs with a bearish “reversal day” having been established, raising the prospect of further weakness in the sideways range of the past three months, the Credit Suisse analyst team reports. GBP/USD has retested and again seen a rejection of the 1.4238/46 highs with a bearish “reversal day” having been established. This sees a more decisive topside rejection and raises the prospect of further weakness in the sideways range of the past three months.
Support is seen at 1.4137 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 1.3977/73, potentially even the 55-day average at 1.3939, but with this level expected to prove a better floor.
Resistance is seen at 1.4192 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 reassert the broader uptrend for a move into our 1.4302/77 first core objective zone.