GBP/USD finally saw a decisive break of the 1.30 March low last week. Analysts at Credit Suisse look for the risk to stay directly lower for a test of the 61.8% retracement and psychological barrier at 1.2500/1.2494.

Resistance at 1.3000 set to cap

“With the USD expected to stay strong, we look for the risk to stay directly lower. Support is seen next at the 1.2676 low from September 2020 ahead of the 61.8% retracement and psychological barrier at 1.2500/1.2494. Whilst we would look for this to hold at first, we see no reason not to look for a break in due course with support then seen next at 1.2251.” 

“Resistance is seen at 1.2812 initially, then 1.2862 with 1.2917 ideally capping to keep the immediate risk lower. Above can see a recovery back to 1.2973/82, potentially 1.3000, but with sellers expected here.”