GBP/USD: Resistance at 1.3487/1.3500 to cap for a fall back to 1.3173/45 – Credit Suisse

GBP/USD extended its rebound on Friday. However, strength stays seen as corrective ahead of a retest of medium-term support at 1.3173/35, in the view of analysts at Credit Suisse.

GBP/USD is ideally capped at 1.3487/1.3500

“GBP/USD has been capped well below the 55-day average and mid-February lows as well as its uptrend from December, seen starting at 1.3487 and stretching up to 1.3500 and this rebound is viewed as a temporary bounce prior to the risk turning lower again.”

“Support is seen at 1.3329 initially, below which should see a fall back to 1.3272 and then medium-term support at 1.3173/35 – the 2021 lows, 38.2% retracement of the 2020/2021 uptrend and 200-week average. We continue to look for a good floor here. Should weakness directly extend though, we would see little then in terms of meaningful support until 1.2855/29.”