GBP/USD maintains a bearish “reversal day” to keep the risk lower in its range with support seen at 1.3706 initially, then 1.3641, as reported by the Credit Suisse analyst team.
Resistance moves to 1.3838/40 initially
“Support moves to 1.3733/25 initially below which should see a fall back to 1.3706 next, ahead of the 1.3670 March low and then 1.3641 – the 38.2% retracement of the September/February rally – which we would look to hold at first. A break though can clear the way for further weakness to 1.3567, with better support seen starting at the December high at 1.3514 and stretching down to 1.3458/52 – the ‘neckline’ to the long-term base, 50% retracement of the rally from September and YTD low at 1.3458/52, where we would look for signs of a better floor.”
“Resistance is seen at 1.3794 initially, with a break above 1.3840 needed to ease the immediate downside bias for a recovery back to 1.3890. Above 1.3919 though is needed to see the ‘reversal day’ negated for a move back to the top of the range at 1.3977.”
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