GBP/USD to enjoy a deeper recovery above 1.3280/90 – Credit Suisse

Economists at Credit Suisse continue to look for support at 1.3189/35 to hold for now. As they note, GBP/USD needs to surpass the 1.3280/90 zone to see a deeper recovery.

Support zone of 1.3189/35 to remain a floor 

“Whilst below 1.3280/90 the immediate risk stays seen lower for another move into our core objective support zone of 1.3189/35, which includes the 38.2% retracement of the 2020/21.” 

“Although our broader bias for the USD stays firmly bullish, we continue to look for 1.3189/35 to try and remain a floor for now for the unfolding of a consolidation range.”

“A break below 1.3135 would warn of further significant weakness with support seen next at 1.3109/06 but with the next more meaningful support not seen until the 50% retracement of the 2020/2021 uptrend and November 2020 low at 1.2855/29.” 

“A close above 1.3280/90 remains needed to suggest a deeper recovery can emerge for a retest of the recent ‘outside day’ high at 1.1371 which we would look to then ideally cap to define the upper end of a potential consolidation range.”