GBP / USD has again rejected resistance at 1.3310 / 19, the 78.6% retracement of September’s slide, to heighten the outlook for more sideways moves for now with support seen at 1.3172 / 62, Credit Suisse economists report.
Key quotes
“Short-term support is seen at 1.3204, then 1.3193, with the 13-day average and price support at 1.3172 / 62 now ideally holding for a retest of 1.3310 / 19. Below 1.3162, however, a deeper drop back to 1.3127 can be seen, but with a break below 1.3106 needed to warn of a short-term top within the range and a drop towards uptrend support at 1.2942 ”.
“Resistance is initially seen at 1.3263. Above 1.3310 / 19 may add weight to our view as we first highlighted in late September that we are in the process of forming the possible ‘right shoulder’ for a major base process for a move to 1.3403 / 09 a continuation and finally back to long-term Price and ‘neckline’ resistance at 1.3472 / 1.3514. Above here, what we eventually look for is necessary to see a major base secured, clearing the way for a move above 1.4300 ”.
