GBP/USD to dive as low as 1.2855 on a breach of the support 1.3189/35 zone – Credit Suisse

GBP/USD extends its aggressive collapse towards 1.34. Analysts at Credit Suisse stay bearish for a cluster of supports including the 38.2% retracement of the entire 2020/2021 bull trend at 1.3189/35.

Resistance is seen at 1.3601/09

“Next support is seen at 1.3350/43 ahead of a more important cluster of supports including the 38.2% retracement of the entire 2020/2021 bull trend and December 2020 lows at 1.3189/35. Our bias would then be for a floor to be found here, at least at first. Should weakness directly extend, we see support next at 1.2855/29.”

“Resistance for a rebound is seen at 1.3530 initially, then 1.3555, above which can see a recovery back to 1.3601/09, which we continue to look to cap. Above can see a deeper rebound towards 1.3658/75, but with fresh sellers expected here.”