GBP/USD to retest medium-term support at 1.3189/35 – Credit Suisse

GBP/USD continues to essentially hold the “neckline” to the December base at 1.3376 for now. But the broader risk is seen lower for a retest of medium-term support at 1.3189/35, according to economists at Credit Suisse.

Resistance stays seen at 1.3526

“With the USD expected to strengthen further, we look for a sustained move below 1.3376 in due course to clear the way for further weakness to 1.3296 and eventually a retest of medium-term support at 1.3189/35 – the 38.2% retracement of the 2020/2021 uptrend and 2021 lows. We would look for a fresh floor here. Should weakness extend this would warn of a significant break lower with support seen next at 1.2855/29.” 

“Resistance stays seen at 1.3435/36 initially, above which can see strength back to 1.3470, then 1.3492, but with a tactical negative bias maintained whilst below 1.3526.”