GBP/USD to face stubborn resistance at the 1.1409/1.1500 zone – Credit Suisse

The rollercoaster ride for GBP/USD continues. Economists at Credit Suisse see scope for a deeper but still corrective recovery to 1.1405/09.

Initial support aligns at 1.1195

“Whilst our bias, for now, is to view this strength as a corrective rebound, with resistance from the 13-day exponential average cleared, we see scope for strength to extend further still.”

“Resistance is seen next at 1.1321, ahead of 1.1364 and then what we see as much tougher resistance from the lower end of the 2016/2022 range at 1.1409/1.1500. We look for this to then prove a major barrier and for the broader risk to turn lower again.”

“A close above the 1.1739 September high is needed to suggest we may have seen a more important low.”

“Support is seen at 1.1195 initially, then 1.1085 with a break below 1.1025 needed to ease the immediate upside bias for a fall to test support next at 1.0933/16.”