GBP/USD could plunge as low as the 1.3189/35 support zone – Credit Suisse

GBP/USD remains capped at 1.3755/65. Analysts at Credit Suisse look for a retest of key range support at 1.3601/1.3567.

Key support stays seen starting at 1.3601 and stretching down to 1.3571/67

“Support is seen at 1.3694/90 initially, ahead of 1.3633 and then a retest of key support from the lower end of converging range from late June, seen starting at 1.3601 and stretching down to 1.3571/67.”

“An eventual move below 1.3571/67 should resolve the range lower for the completion of a bearish “triangle” continuation pattern. We would then look for a more meaningful decline with support seen initially at 1.3520/15, the December 2019 high, then the ‘neckline’ to the 2019/2020 base at 1.3451/36.”

“Big picture, we would see scope for an eventual fall to a cluster of supports including the 38.2% retracement of the entire 2020/2021 bull trend at 1.3189/35.”

“Above 1.3755 can see a deeper recovery to the 55-day average and further price resistance at 1.3788/1.3814, but with fresh sellers expected to show here.”