GBP/USD has seen a sharp recovery. However, the pair is likely to remain capped below its 55-day moving average (DMA) at 1.2830 for a move back lower, economists at Credit Suisse report.

GBP/USD to suffer an eventual move back below 1.2154, ahead of 1.2013

“Although we see scope for the consolidation to extend further and potentially reach the 55-DMA at 1.2830, we expect a more solid ceiling to be found here for a move back lower and an eventual resumption of the core downtrend.” 

“Support is seen at the recent low at 1.2154, with a break below here triggering an eventual move to the 78.6% retracement of the 2020/21 uptrend and May 2020 low at 1.2073/13.”