GBP/USD to further weakness to 1.3802/01, potentially as far as 1.3669/48 – Credit Suisse

GBP/USD is struggling to hold onto 1.39. According to the Credit Suisse analyst team, cable should see weakness extend further, with next support seen at 1.3802/01.

Resistance at 1.4000/10 now ideally caps

“We continue to look for a more significant turn lower within the broader range from late February. Support is seen next at 1.3878/59 – the 23.6% retracement of the rally from last September – which we look to hold at first. Below in due course though should see support next at the May lows at 1.3802/01.” 

“Whilst we would look for the 1.3802/01 level to hold at first, below in due course can see weakness extend further to 1.3717, potentially even the more important April low and 38.2% retracement of the rally from last September at 1.3669/48.” 

“Resistance moves to 1.3971 initially, with 1.4000/10 ideally capping. Above can ease the immediate downside bias for a recovery back to 1.4034, potentially into the 1.4075/99 zone, but with this expected to cap.”