GBP/USD stays on course to test support at 1.2072/1.2017 and probably lower – Credit Suisse

GBP/USD has seen a further sharp fall to the June 2020 low at 1.2251. Economists at Credit Suisse expect the pair to extend its decline towards the 1.2072/1.2017 support zone and even lower.

Resistance at 1.2637 set to cap

“Whilst some near-term consolidation is expected at the June 2020 low at 1.2251, we look for a break in due course for a fall to what we look to be stronger support at the 61.8% retracement and May 2020 low at 1.2072/1.2017.” 

“Should the 1.2072/1.2017 also fail, this would be seen to expose much more important support at the 2020 low and the potential uptrend from the 1985 low at 1.1467/1.1409.”

“Resistance at 1.2637 ideally still caps. Above can see a corrective recovery back to 1.2973/81.”