GBP/USD: Corrective phase to test support at 1.3840/30 – Credit Suisse

GBP/USD has reversed sharply lower for a break of not only near -term price support at 1.4082/79 but also the rising 13-day exponential average. Economists at Credit Suisse see scope for further but still corrective weakness to 1.3840/30, with a fresh floor looked for here.

Key quotes

“Support moves to 1.3910/02 initially, below which should then see a move to price and trend support at 1.3840/30. We would then look for an attempt to find a floor here for a resumption of the core uptrend.”

“Below 1.3830 would warn of a more serious correction lower and a test of 1.3741/31, potentially the 55-day average at 1.3683.” 

“Resistance is seen at 1.3971 initially, with a move above 1.4022/29 needed to ease the immediate downside bias. Above 1.4182 though is needed to suggest the correction is over for strength back to 1.4237, then 1.4302/77.”