GBP/USD to suffer a sharp slump to 1.3189/35 on a break below 1.3571/67 – Credit Suisse

GBP/USD spotlight turns back to the 1.3571/67 region. Below here, cable would resolve the range lower for the completion of a bearish “triangle” continuation pattern to warn of a more meaningful decline, the Credit Suisse analyst team reports.

Resistance seen at 1.3755/65

“Whilst we would look for a fresh hold at 1.3571/67 again for now, an eventual move below would resolve the range lower for the completion of a bearish “triangle” continuation pattern. We would then look for a more meaningful decline with support seen initially at 1.3520/15, the December 2019 high, then the ‘neckline’ to the 2019/2020 base at 1.3451/36.” 

“Big picture, we would see scope for an eventual fall to a cluster of supports including the 38.2% retracement of the entire 2020/2021 bull trend at 1.3189/35.” 

“Resistance is seen at 1.3679 initially, with a break above 1.3694/1.3700 needed to ease the immediate downside bias for a move back to the 13-day ema and price resistance at 1.3755/65, which now ideally caps.”