GBP/USD remains above price support at 1.3810/09 as well as its rising 55-day average and economists at Credit Suisse look for a retest of key price resistance at 1.4001/17, with a move above here needed to mark a more convincing base.
See – GBP/USD: Britain’s political issues to limit sterling gains – Westpac
Break above key resistance at 1.4001/17 needed to see the core trend turn higher again
“With resistance at 1.3950 broken, cable reasserts an immediate upward bias in the broader range and we look for a retest of the March highs at 1.4001/17.”
“Beyond the March highs at 1.4001/17 remains needed to see a more convincing base established to reinforce our core longer-term bullish view following the completion of a much larger base above 1.3514 late last year. We would then look a move back to the 1.4238 high initially ahead of our first core upside target of 1.4302/77 – the 2018 highs and 50% retracement of the 2014/2020 bear trend.”
“Support moves to 1.3939/33 initially, with 1.3891 now ideally holding to keep the immediate risk higher in the range. Below can see a fall back to the 55-day average and price support at 1.3868/58, but with fresh buyers expected here.”
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