GBP/USD to look for a deeper correction lower - Credit Suisse

FXStreet notes that the GBP/USD pair maintains a top below a cluster of supports seen centred on 1.3779, including its medium-term uptrend and economists at Credit Suisse look for further corrective weakness.

“GBP/USD has extended its near-term recovery but with a top seen in place beneath the lower end of the March range, 55-day average and medium-term uptrend centred on 1.3779/82 this stays seen as temporary and we continue to look for a more significant turn lower.” 

“Near-term support moves to 1.3756, below which should add weight to our view for a fall back to 1.3693 ahead of 1.3670/63 and then the 38.2% retracement of the September/February rally at 1.3641. 

“Whilst we would look for an initial rebound from the 1.3641 mark, we look for a break in due course with support seen next at 1.3567, ahead of 1.3530/20 and then the 50% retracement and the YTD low at 1.3456/52. Whilst we look for this to hold at first, a break in due course can see the “measured top objective” at 1.3322.”