GBP/USD: Correction to find first support at 1.2640, next 1.2619 is key – Credit Suisse

The Credit Suisse analyst team look for a retracement to the rally of the past month with support seen at 1.2619 as the GBP/USD pair has been capped at 1.2817. In contrast, UOB and Commerzbank point to the upside.

Key quotes of Credit Suisse

“Support is seen at 1.2640 initially – the 23.6% retracement of the May/June rally – then key price support at 1.2619. Beneath this latter level is needed to see a near-term top established to warn of a more concerted retracement lower with support seen next at the 13-day average at 1.2569, then the 38.2% retracement and price support at 1.2535/33., which we look to try and hold.” 

“Resistance is seen at 1.2725/28 initially, with a break above 1.2755 needed to see the risk turn higher again for a retest of 1.2813/17, with the potential downtrend from December last year seen at 1.2850 today.”