GBP/USD: Scope for a substantial drop to 1.15 – Credit Suisse

GBP/USD has moved below the 1.2073/13 support zone. Subsequently, economists at Credit Suisse see broader risk for 1.1500.

Initial resistance moves to 1.2431

“With GBP expected to stay weak in its own right in Trade Weighted Terms and with the USD also expected to stay strong we see no reason not to look for a sustained break below 1.20, clearing the way for further weakness to 1.1500/1.1470, potentially the 1.1409 low of 2020.”

“Resistance is seen moving to 1.2431 initially, with 1.2668 ideally continuing to cap.”