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GBP / USD to seek a deeper correction to the downside – Credit Suisse

GBP / USD remains topped below a group of supports that are seen centered at 1.3779, including its medium-term uptrend, Credit Suisse analysts say. They look for a greater corrective weakness.

Key statements:

“GBP / USD has extended its short-term recovery, but with a ceiling below the lower end of the March range, the medium-term 55-day average uptrend, centered at 1.3779 / 82, which remains temporary. and we continue to look for a more significant bearish turn. “

Short-term support is at 1.3756, below which should add weight to our view for a dip back to 1.3693. before 1.3670 / 63 and then the 38.2% retracement of the September / February rally at 1.3641. ”

“While we would look for an initial bounce from the 1.3641 area, we look for a breakout in due course with the support seen below at 1.3567, ahead of 1.3530 / 20 and then the 50% retracement and this year’s low at 1.3456. / 52. While we expect this to hold early, a breakout in due time may make the “measured upper target” 1.3322 “.

“Resistance moves initially to 1.3798, then to 1.3847 / 53 with the upper top and our immediate tactical bearish bias remaining in place while below 1.3866 / 77.”

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