GBP/USD: Corrective phase to emerge with resistance seen at 1.2533/43 – Credit Suisse

GBP/USD looks likely to see a corrective recovery, in the opinion of economists at Credit Suisse. Key resistance is seen at 1.2533/43, then 1.2633/39.

Broader outlook stays bearish

“GBP/USD has rallied sharply after holding the 1.2157 low of last week and although our broader outlook stays seen negative, with daily MACD momentum having turned higher, we look for a corrective recovery/consolidation phase to now emerge.” 

“We see resistance initially at 1.2518, then the 23.6% retracement of the 2022 fall at 1.2533/43. Whilst we would expect a cap here at first, above in due course would be seen to open the door to a test of the May high at 1.2633/39.” 

“Support is seen at 1.2407/01 initially, with 1.2320/16 needing to hold to maintain an immediate upside bias. A break would suggest we are more likely to see a low level consolidation phase instead, with support seen next at 1.2218 and more importantly at 1.2167/57.”