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The GBP/USD pair maintains a top below a cluster of supports seen centred on 1.3779, including its medium-term uptrend and economists at Credit Suisse look for further corrective weakness.

Key quotes

“GBP/USD has extended its near-term recovery but with a top seen in place beneath the lower end of the March range, 55-day average and medium-term uptrend centred on 1.3779/82 this stays seen as temporary and we continue to look for a more significant turn lower.”  

“Near-term support moves to 1.3756, below which should add weight to our view for a fall back to 1.3693 ahead of 1.3670/63 and then the 38.2% retracement of the September/February rally at 1.3641.  

“Whilst we would look for an initial rebound from the 1.3641 mark, we look for a break in due course with support seen next at 1.3567, ahead of 1.3530/20 and then the 50% retracement and the YTD low at 1.3456/52. Whilst we look for this to hold at first, a break in due course can see the “measured top objective” at 1.3322.”  

“Resistance moves to 1.3798 initially, then 1.3847/53 with the top and our immediate tactical bearish bias seen staying in place whilst below 1.3866/77.”