GBP/USD: Under near-term pressure, heads to the 1.2505 support – Credit Suisse

GBP/USD remains capped by the 200-day average at 1.2693 and the Credit Suisse analyst team stays biased lower for a test of key support from the 55-day average and uptrend at 1.246/21.

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Key quotes

“Support is seen at 1.2505 initially, beneath which should clear the way for a fall back to more important support at 1.2446 and 1.2421 – the confirmed uptrend from March and rising 55 -day average respectively. We look for an attempt to establish a floor here. A break would raise the prospect of a more concerning break to the downside, with support then seen next at 1.2278 – the 38.2% retracement of the entire rally from March.”

“Resistance moves 1.2583/89 initially, then 1.2609/11, above which can ease the immediate downside bias for a fresh look at the 200 -day average and recent high at 1.2681/93. Beyond here can clear the way for a fresh look at the high of last week and 78.6% retracement of the decline from December at 1.2813/17, but with fresh sellers expected here.”