GBP/USD to suffer further weakness towards important support at 1.3669/48 – Credit Suisse

GBP/USD has broken below its recent low at 1.3786 – which should lead to further weakness within the range. The next support is seen at the more important 1.3369/48 zone, which is a major medium-term inflection point, as the Credit Suisse analyst team notes.

Resistance at 1.3873/86 ideally caps, with support seen at 1.3669/48

“We look for a move to minor support at 1.3717 next and likely the more important April low, 200-day average and 38.2% retracement of the rally from last September at 1.3669/48, where we would look for a more important floor.”

“It’s worth highlighting that a break below 1.3669/48 would complete a major ‘double top’, however this is viewed as a risk scenario for now. It’s worth highlighting though that the next notable support below here is at 1.3579/67.” 

“Short-term resistance moves to 1.3873/86, which now ideally caps to maintain the short-term downward pressure. A close above 1.4000/07 would instead suggest the worst of the sell-off is over to reinforce the broader sideways range.”