GBP/USD: Break below 1.3411 reinforces the case for a fall to 1.3189/35 – Credit Suisse

GBP/USD is breaking below its 1.3424/11 lows. This reinforces the core bearish view of the Credit Suisse analyst team, with next support at 1.3277, then 1.3189/35.

Resistance moves to 1.3607

“With the market breaking lower, remaining well below (falling) key moving averages and with weekly MACD momentum still picking up pace, our core bias stays bearish for a deeper move lower.”

“We look for a move to 1.3277 next, before an eventual fall to 1.3189/35, which is the major cluster of supports including the 200-week average and 38.2% retracement of the 2020/21 rise. We would expect this zone to be a tough barrier, however, we note that the next support is seen at 1.3106.” 

“The pair should now ideally remain capped below the 1.3411/3433 lows into the daily close to maintain this latest breakdown. Next resistance thereafter is seen at 1.3565/3607.”