Should the GBP / USD break below 1.3810 / 09 it could end thoughts of a “double bottom”, clearing the way for a move back towards the lower end of the wider range at 1.3717, reports the Credit Suisse analyst team.
Key statements:
“The GBP / USD is not only back well below the ‘neckline’ to the base of the ‘double bottom’ at 1.3919, but also from its ascending 55-day average, throwing a serious question mark on this base.
“Below 1.3810 / 09 the base would be completely negated to reinforce the wider lateral range again, albeit with an immediate bearish bias.. Support would then be seen next at the recent “reversal day” low at 1.3717, below which it may clear the way for a retest of the lower end of the lateral range at 1.3670 / 69. While we would look for new containment here, a breakout would nonetheless complete a bearish continuation pattern. “
“Resistance is initially seen at 1.3886, and immediate risk now looks more bearish as long as it remains below 1.3919. However, it needs to exceed 1.3950 to clear the way for a retest to the top of the 1.4001 / 17 ”range.
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