GBP/USD: The risk for a test of the 55-DMA at 1.3710 grows - Credit Suisse

FXStreet reports that the Credit Suisse analyst team notes that the GBP/USD pair stays on course for a test of support at 1.3840/30, with the risk now seen for a move to the 55-day average at 1.3710.

“We continue to see scope for a deeper corrective setback yet to price and trend support from early January at 1.3840/30. We continue to look for an attempt to find a floor here, at least at first. The risk for a break through in due course is seen growing steadily which would then warn of a more serious correction lower and a test of 1.3741/31, potentially the 55 -day average at 1.3710, but with fresh buyers expected here.” 

“Resistance is seen at 1.3932 initially, above which can see a move back to 1.3978.”