The Signal to More Sustained GBP/USD Sell-Off: Credit Suisse
- Written by: Gary Howes
Content provided by eFXnews.
With the pound / dollar exchange rate’s rally being brought into question we consider the levels to watch when gauging the prospect of a potential move lower. Credit Suisse give ustheir answer, writing:
GBPUSD's focus is still on support at the 38.2% retracement of the February/May recovery at 1.4414.
We allow for a bounce here, but beneath it can then look to the 55-day average and the top of the former base at 1.4377/48.
Capitulation below price/50% retracement level at 1.4303/4299 is required to signal a more sustained sell-off to 1.4090, ahead of the early April low at 1.4006.
Resistance moves to 1.4573/80, then 1.4641, with a break above 1.4771 needed to turn the trend higher again to test a bigger obstacle at 1.4847/83 – the 50% retracement level and the falling 200-day average.
In line with this view, Credit Suisse is running a limit order at 1.4580, with a stop a 1.4659, and a target at 1.43.
This trade is recorded and tracked in eFXplus Orders.