GBP/USD to test the 55-DMA and price support at 1.2353/44 on a break below 1.2435 – Credit Suisse

GBP/USD has been capped as looked for at 1.2668/1.2758 long-held target. Analysts at Credit Suisse expect Cable to suffer further falls.

Resistance at 1.2681 set to cap fresh strength if see

“GBP/USD has been capped as looked for at our core target at 1.2668/1.2758 and our bias remains to look for an important top here. Below support at 1.2435 can add weight to our view for a fall to the 55-DMA and price support at 1.2353/44, but with this ideally holding at first. Below 1.2344 in due course can confirm a larger top with support then seen next at 1.2130.”

“Resistance at 1.2681 ideally caps fresh strength if seen. Above 1.2758 though stays seen needed to suggest strength can extend further to 1.3000 next, although this is not our base case.”