GBP/USD fell to the key low of 2020 and long-term trend support stretching back to 1985 at 1.1500/1409. Economists at Credit Suisse look for eventual downside below 1.1350.

Break under 1.1350 to signal a substantial breakdown

“GBP remains weak on a Trade Weighted basis and we thus continue to look for a break below 1.1409 and then a move to potential trend support at 1.1350, below which would signal a substantial breakdown and open the door to 1.1285 next, ahead of 1.1020/00, which is now our core objective. However, we would not rule out a move all the way to the 1985 lows at 1.0520 if 1.1409/1.1350 breaks.”

“First resistance is seen at 1.1745/63, then at the 55-day moving average and the recent high at 1.1900/1.1923, which ideally caps to prevent a lengthier consolidation.”