GBPUSD has surged dramatically higher to establish a head-and-shoulders reversal pattern, according to David Sneddon and his team at Credit Suisse in London.
David Sneddon, Pascal Zingg and James Gilbert say an important reversal has occurred turning the core trend higher. Resistance is initially seen at the 1.3298 September high, then 1.3411 (the 50% retracement of the 2018 to 2019 bear trend), before reaching more significant resistance at 1.3610/1.3712 (see Chart). This significant level comes from i) the neckline to the 2018 top; ii) the 61.8% Fibonacci retracement of the 2018 to 2019 fall; and iii) the 200-week moving average.
Overall, Sneddon and his team stay bullish while GBPUSD remains above 1.2968/59.