GBP/USD: Scope for a deeper recovery, but strength still seen as corrective – Credit Suisse

GBP/USD looks likely to see a deeper corrective recovery. Nonetheless, the broader view of the Credit Suisse analyst team stays bearish, with key resistance at 1.2633/51.

Support is seen at 1.2338/29

“Although our broader outlook stays negative, with daily MACD momentum having turned higher we continue to look for a corrective recovery/consolidation phase to emerge. “

“Beyond the next key resistance at the May high and 23.6% retracement of the entire fall from 2021 at 1.2633/51 would trigger an even deeper correction, with the next resistance at the 38.2% retracement of the 2022 at 1.2766, then the crucial 55-day average at 1.2843, where we would have greater confidence in a ceiling for a resumption of the broader downtrend.” 

“Support is seen at 1.2447/39 initially, with 1.2338/29 now needing to hold to maintain an immediate upside bias. A break would end the corrective recovery phase, with support seen next at 1.2218 and more importantly at 1.2167/57.”