GBP/USD continues downhill and tests 1.2150 on Monday. Analysts at Credit Suisse remain tactically bearish with next key supports at 1.2157/50 then 1.2072, which is certainly not considered a floor.
Key Statements:
“Next key support is seen at the recent lows at 1.2167/57, which we expect to be broken quite imminently, with short-term MACD daily momentum coming down from neutral levels. Thereafter, we continue to look for an eventual drop to our 1.2072/17 target zone – the May 2020 low and a 78.6% retracement of the entire 2020/2021 uptrend.”
“Given the very strong downtrend, the 1.2072/17 area is not considered a bottom and we certainly don’t rule out an eventual move to 1.15/1.14, which is the bottom of the six-year range.”
“Short-term resistance moves lower to 1.2300/01 initially, above which would trigger a move to the recent minor break point at 1.2431/39, which we look to halt the advance. Above here a more important medium-term resistance would open up at 1.2668/76, where we would be even more confident of a top being hit.”
Source: Fx Street
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