GBP/USD remains under pressure after seeing a clear break of medium-term support at 1.3172/21. Economists at Credit Suisse look for further weakness to 1.2855/29.

Downtrend to extend with next key support seen at 1.2855/29

“We see scope for a near-term bounce from Fibonacci projection support at 1.3011 but with strength seen as temporary ahead of further weakness in due course with support then seen next at the lower end of the nine-month channel at 1.2966.” 

“Whilst a fresh hold at 1.2966 will be looked for our core outlook stays lower for an eventual fall to what we see as more meaningful support at the 50% retracement of the uptrend from 2020 and November 2020 low at 1.2855/29.”

“Resistance is seen at 1.3082 initially, then 1.3142, with resistance at 1.3195 ideally capping to keep the immediate risk lower.”