GBP/USD to move back to the 1.4237 high on a break above 1.4017 – Credit Suisse

The GBP/USD pair should see a fresh base established above resistance at 1.4017 for a resumption of its uptrend to 1.4302/77 and eventually 1.49/1.51, per Credit Suisse.

Key quotes

“GBP/USD has extended its defence of price support at 1.3776 also now essentially the rising 55-day average and a sharp rally has been seen as expected for a retest of the 1.4017 recent reaction higher. Although a fresh pullback from here should be allowed for near-term, we continue to look for a break in due course to suggest a fresh base is in place for a resumption of the core uptrend.”

“We would look for strength back to the 1.4237 current cycle high, then our first core upside target of 1.4302/77, which includes the key highs of 2018 and 50% retracement of the fall from 2014. Whilst we would look for a fresh cap here for now, we look for a break in due course for a move to 1.49/1.51.” 

“Support stays seen at 1.3918 initially, then 1.3880, with a move below 1.3846 needed to reassert a bearish tone again for a fall back to retest 1.3779/69, where we would again look for a floor. A break though would warn of a test of the medium-term uptrend from March 2020, today seen at 1.3697.”