GBP/USD to slide below 1.30 towards the 1.2855/29 support zone – Credit Suisse

GBP/USD is rolling over and coming under short-term pressure. Economists at Credit Suisse look for an imminent break below 1.30 and a move to next support at 1.2855/29.

Resistance at 1.3287/99 to cap for an eventual fall to 1.2855/29

“We look for a break below the 1.3051/43 support to open up a fall back to the recent low at 1.3000. Beneath here should reassert the downtrend, especially if daily MACD also starts to roll over. Support is then seen next at the lower end of the nine-month channel at 1.2930/11 and eventually the 50% retracement of the uptrend from 2020 and November 2020 low at 1.2855/29. We would look for a fresh floor here.” 

“Resistance is seen at 1.3177/84 initially, a close above which can see a move back to 1.3223/26 and potentially a retest of 1.3287/99. A close above here would suggest that the recovery can extend further, with resistance seen next at the 55-day average at 1.3342, where we would look for a solid cap if reached.”