GBP/USD: Rcovery is over following the break below 1.2186 – Credit Suisse

The GBP/USD recovery looks to be over after being capped below the “neckline” to the “double-top” at 1.2248, as well as exactly below the 38.2% retracement of the fall from late April at 1.2295/96, per Credit Suisse. FXStreet’s analyst Yohay Elam also sees more falls on the cable. 

Also see: UK Retail Sales miss estimates with -18.1% in April

Key quotes

“The market has now broken below 1.2186/74 to complete an intraday top for a move back to 1.2118, then 1.2076/67. A break here can target the 50% retracement of the rally from March at 1.2030, then the long-term uptrend from 1985 at 1.1993.” 

“A break above 1.2295/96 can see a test of the 55-day average, currently at 1.2316, but with a close above here needed to see the top negated and the trend turn neutral, which is not our base case.”