GBP/USD has stalled below key resistance at the May high and the 23.6% retracement of the entire fall from 2021 at 1.2638/48. Economists at Credit Suisse look for a move to 1.2073/13 in due course.

Break above 1.2638/48 to face more solid cap at the crucial 55-DMA of 1.2788

“With the falling medium-term moving averages and negative MACD momentum painting a clear bearish picture, we look for further weakness to develop from the May high and the 23.6% retracement of the entire fall from 2021 at 1.2638/48, with an eventual objective of the May 2020 low and the 78.6% retracement of the entire 2020/2021 uptrend at 1.2073/13.” 

“Should a break above 1.2638/48 take place, we would look for a more solid cap at the crucial 55-day moving average at 1.2788, which we would look to hold to resume the broader downtrend.”