GBP/USD to see a retest of the 1.3783/79 level – Credit Suisse

The GBP/USD pair maintains a bearish “reversal day” and analysts at Credit Suisse stay bearish for a test of its recent low and 55-day average at 1.3783/76. 

Key quotes 

“We look for the immediate risk to turn back lower within the broader consolidation phase. Support remains seen at 1.3846, below which should add weight to this view to reassert a bearish tone again for a fall back to retest the 55-day average and recent low at 1.3783/79, where we would again look for a floor.” 

“A break below 1.3783/79 would warn of a top and a more meaningful correction lower, with support seen next at the medium-term uptrend from March 2020, today seen at 1.3715, with fresh buyers expected here at first.” 

“Near-term resistance moves to 1.3905, above which can see a retest of 1.4005/17. Beyond here remains needed to suggest a fresh base is in place for a resumption of the core uptrend. We would then look for strength back to the 1.4237 current cycle high, then our first core upside target of 1.4302/77, which includes the key highs of 2018 and 50% retracement of the fall from 2014.”