GBP/USD: Sustained move below 1.1350 to warn of potential fall to the 1985 low at 1.0520/1.0483 – Credit Suisse

GBP/USD is declining sharply again. Economists at Credit Suisse assess the next major support levels should the pair break below their long-held core bearish objective at 1.1500/1.1409. 

Resistance at 1.1902 ideally caps

“GBP/USD has seen a clear break of the 1.1760 July low as expected and we stay bearish for a move to our core objective of the key low of 2020 and long-term trend support stretching back to 1985 at 1.1500/1409. We would then look for a fresh temporary floor here.”

“GBP/USD below the 1.1409 low of 2020 and certainly potential trend support at 1.1350 would be seen to mark a further significant deterioration with support seen next at 1.1285, ahead of 1.1020/00 and potentially back to the 1985 lows at 1.0520/1.0483.”

“Resistance at 1.1902 now ideally caps although a close above the 55-day average at 1.2040 is needed to open the door to a consolidation phase.”