GBP/USD to warn of a more significant correction lower below 1.3779 – Credit Suisse

The GBP/USD pair maintains a top below a cluster of supports seen centred on 1.3779, including its medium-term uptrend and analysts at Credit Suisse look for further corrective weakness.

Key quotes 

“GBPUSD is seeing a near-term bounce but with a top seen in place beneath the lower end of the March range, 55-day average and medium-term uptrend centred on 1.3779/82 this is seen as temporary and we continue to look for a more significant turn lower.”

“Near-term support is seen at 1.3733, with a move below 1.3693 needed to clear the way for a fall back to 1.3670/63 and then the 38.2% retracement of the September/February rally at 1.3641. Whilst we would look for an initial rebound from here, we look for a break in due course with support seen next at 1.3567, ahead of 1.3530/20 and then the 50% retracement and the YTD low at 1.3456/52. Whilst we look for this to hold at first, a break in due course can see the ‘measured top objective’ at 1.3322.” 

“Resistance remains seen initially at the ‘neckline’ to the top at 1.3776/82, which we look to ideally cap. Above can see a deeper recovery to 1.3814/18, but only above 1.3866/77 would see the top neutralised.”