GBP/USD fell to a key 2020 low and the long-term trend stretched back to 1985 at 1.1500/1409. Credit Suisse economists expect a possible drop below 1.1350.
Break below 1.1350 to signal a substantial breakdown
“GBP remains weak on a trade-weighted basis, so we continue to look for a break below 1.1409 and then a move to potential trend support at 1.1350, below which would signal a substantial break and open the door to another 1.1285 before 1.1020/ 00 , which is now our main goal. However, we would not rule out a move to the 1985 low at 1.0520 if 1.1409/1.1350 breaks.”
“First resistance is seen at 1.1745/63, then at the 55-day moving average and the recent high at 1.1900/1.1923, which is the ideal limit to avoid a longer consolidation.”