GBP/USD to suffer further weakness in Q4 towards 1.3189/35 – Credit Suisse

GBP/USD has completed a bear “triangle”. Subsequently, economists at Credit Suisse expect the cable to weaken towards 1.3189/35 and potentially 1.2829.

Bearish bias while below 1.3755

“GBP/USD has collapsed below the lower end of its converging range from late June at 1.3571/67 to complete a bearish “triangle” continuation pattern and we continue to look for further weakness to support at the 38.2% retracement of the 2020/2021 bull trend at 1.3189/35.”

“Whilst we would look for a hold at 1.3189/35 and potentially for some time, the broader risk is seen lower and beneath 1.3135 can see support next at 1.2829.”

“Resistance at 1.3755 capping can maintain the “triangle” and keep the immediate risk lower in the range. Only above 1.3914 would be seen to turn the risk higher again.”