GBP/USD closed the previous week above 1.20 but has reversed its course on Monday. The pair is expected to see a clear break below 1.1936, with Credit Suisse’s core technical objective at 1.15/1.14.

Next major support seen at 1.1500/1.1409 

“With a top in place in trade-weighted terms and with short-term momentum reaccelerating, we look for a sustained break of the 1.1936 June low in due course. This should then clear the way for further weakness to next support at 1.1861/57 ahead of 1.1775 and eventually 1.1500/1.1409, the bottom of the six-year range and potential long-term trend support stretching back to 1985. Our bias remains to then look for a more important floor to be found here.” 

“Near-term resistance is seen at 1.2003, then 1.2039/49, with the recent reaction high and 13-day exponential average at 1.2057/89 ideally capping on a closing basis.”