GBP/USD: Weakness seen as corrective ahead of an eventual rise to 1.3400/14 – Credit Suisse

GBP/USD weakness is seen as temporary and corrective ahead of a fresh rally, analysts at Credit Suisse report.

A break under 1.2749/40 would suggest a more concerted pullback/consolidation

Whilst we see scope for a deeper pullback, our bias is to view this as a temporary setback ahead of strength back to the 1.3143 recent high ahead of 1.3299, then our core objective at the 78.6% retracement of the 2021/2022 fall at 1.3400/14. 

Key support is seen at the uptrend from last September and low of last week at 1.2749/40, which we look to ideally hold on a closing basis. A break would suggest instead a more concerted pullback/consolidation with support seen next at 1.2672, but with the 1.2590 late June low ideally holding.