GBP/USD to resume the uptrend once above 1.3720 – Credit Suisse


GBP/USD continues to perform strongly and strength has already extended to the recent high and “neckline” to the 2018 top at 1.3704/20. Above 1.3720, the cable should see a direct resumption of the core bull trend  with resistance then at 1.3804 and eventually 1.4302/77, per Credit Suisse.

Key quotes

“GBP/USD has seen an impressive recovery from the late December low at 1.3430 and strength has already extended to within touching distance of the recent high and key ‘neckline’ to the 2018 top at 1.3704/20. With a major base in place above 1.3514 we continue to look for a clear break above here to confirm the core uptrend has indeed resumed. We would then see resistance next at 1.3804 ahead of 1.3997/1.4000 and then our first main objective/resistance at 1.4302/77 – the high of 2018 itself and the 50% retracement of the 2014/2020 bear trend.” 

Although we look for the 1.4302/77 zone to cap at first for a fresh and potentially lengthy consolidation, we continue to look for a break in due course for a move to our raised objective (from December), seen starting at 1.4984 and stretching up to 1.5136.”

“Support is seen at 1.3606 initially, with 1.3576 now ideally holding to keep the immediate risk higher. Below can see a retreat back towards 1.3539/35, potentially 1.3505.”

 

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