GBP/USD is expected to see a deeper setback yet, but with support from the uptrend from last September at 1.2762 ideally holding, analysts at Credit Suisse report.

Uptrend support at 1.2762 ideally holds, with resistance seen at 1.2905 initially

We look for further weakness yet to test the confirmed uptrend from September last year, today seen at 1.2762. Our bias would then be to look for the market to try and find a floor here for an eventual resumption of its broader uptrend.

Above 1.2905 is needed to ease the immediate downside bias for resistance next at 1.2966 ahead of 1.3050/51. A break above this latter level is seen needed to suggest the broader uptrend has indeed resumed for a move back to the 1.3143 high.

Below 1.2762 would see the uptrend break to warn of a deeper pullback to the 55-DMA and price support at 1.2672/54 but with fresh buyers expected here.