GBP/USD to suffer further weakness to 1.3189/35 – Credit Suisse

GBP/USD has suffered an aggressive collapse. Economists at Credit Suisse expect the cable to move lower with next support seen at 1.3451/35 and eventually a more important cluster of supports at 1.3189/35.

Resistance is seen at 1.3601/09

“We look for the trend to stay directly lower and look for a quick break of potential trend support from March at 1.3520/05 for a fall to the ‘neckline’ to the 2019/2020 base at 1.3451/35.”

“Whilst we see scope for a hold at 1.3451/35 at first, big picture, we continue to look for an eventual fall to a more important cluster of supports at 1.3189/35. Our bias would then be for a floor to be found here. Should weakness directly extend, we see support next at 1.2855/29.” 

“Resistance for a rebound is seen at 1.3571 initially, then 1.3601/09, which we look to try and cap. Above can see a deeper rebound towards 1.3658, but with fresh sellers expected here.”