GBP set to resume bear trend

The pound is set to resume its post-Brexit bear trend despite the recent corrective bounce, say analysts at Credit Suisse. The trade weighted index for sterling is set to target the all-time low 73.43 seen in 2008 on a medium-term basis. In the shorter term GBP/USD appears to be completing a bearish pattern that signals a test of the immediate post Brexit low of 1.2798.  Potential targets below this are 1.2752, 1.2433, 1.2000 and 1.1855. These figures are based on retracements and levels going back to the mid 1980s.

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