GBPUSD is at risk of breaking below key support and beginning a move down towards 1.2100, according to David Sneddon and his team at Credit Suisse in London.
GBPUSD is currently trading near to key support at 1.2514/06, which comes from i) the lower end of its trading range, ii) the June low and ii) the potential uptrend from January 2019 (see Chart). David Sneddon thinks this support level looks vulnerable and that the low of the year at 1.2444 will be targeted. He thinks that even this level will break in due course, with support first coming at 1.2365 but more meaningful support not coming until 1.2109, which is the 78.6% retracement of the 2016 to 2018 uptrend and the March 2017 low.
On the other hand, Sneddon thinks a break above 1.2594 would ease the downside risk and begin a recovery to 1.2617 and potentially 1.2645/49.