GBP/USD: Scope for a “stress test” of parity – Credit Suisse

GBP/USD fell briefly below the key notable lows of 1985. Economists at Credit Suisse maintain their negative outlook and see scope for a “stress test” of parity.

GBP/USD will try to find a floor at 0.9895

“We stay bearish for a sustained move below 1.0463 for a test of the key parity psychological level. With Fibonacci projection support not far below at 0.9895, we would look for an attempt to find a floor here. Should weakness directly extend though, we would see support next at 0.9535.”

“Resistance at 1.1409/91 ideally caps, although only a close back above 1.1739 would raise the prospect of a potentially more important low.”