GBP/USD: A top sees the risk turn lower with support at 1.2912/02 - Credit Suisse

FXStreet notes that GBP/USD has seen an aggressive fall after confirming a top as expected below 1.3054 to mark a more important turn lower. Analysts at Credit Suisse see support initially at the 55-day average at 1.2912/02, then the potential uptrend from March at 1.2857.

“GBP/USD has extended its rejection from just ahead of the key high of 2019 at 1.3514 for a break as suspected below key price and “neckline” support at 1.3078/54 and this sees a top confirmed to mark a more important turn lower, reinforced by the completion of an RSI momentum top also and DeMark exhaustion signals.” 

“We see support next at the 55-day average 1.2912/02, which we would look to hold at first for a rebound. We look for this to be followed by a break in due course though with support then seen next at the potential uptrend from March at 1.2857, then the June high at 1.2813.”

“Bigger picture, we see scope for a test of a cluster of supports in the 1.2740/1.2691 zone, which includes the 200 - day average and 38.2% retracement of the entire March/September rally. We note though the ‘measured top objective’ is seen set lower at 1.2655.”