GBP/USD to tackle important support at 1.3669/48 below 1.3734 – Credit Suisse

GBP/USD  holds a bearish “outside day” to leave the cable at risk of a fall back to 1.3734, then more important support at 1.3669/48, analysts at Credit Suisse report.

Resistance stays seen at 1.3816 initially

“Beneath Friday’s low at 1.3734 should then see a test of what we see as more important support at 1.3669/48 – the April low, 38.2% retracement of the rally from September and rising 200-day average. We would look for a fresh and ideally important floor here.”

“Below 1.3648 would mark a large ‘double top’ to mark a more important change of trend lower, with support then seen next at 1.35667, then the top ‘neckline’ to the longer-term base at 1.3514.” 

“Resistance stays seen at 1.3816 initially, then 1.3734, with the immediate risk seen staying lower whilst below 1.3865/99. Above though can reassert a recovery bias for a move back to 1.4000/10.”