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The GBP/USD pair traded with a positive bias through the early European session and was last seen hovering near the top end of its daily range, around the 1.2875-80 region. Economists at Credit Suisse look for an attempt to establish a more important base with key resistance seen at 1.2967/1.3007, above which is needed to confirm to open the door back to 1.3125/35 initially and eventually a retest of medium-term resistance at 1.3482/1.3514.

More – GBP/USD attempts to recover towards 1.3070 – Commerzbank

Key quotes

“GBP/USD extends its defence of our target of a cluster of supports at 1.2720/1.2655 – the 200-day average, the 38.2% retracement of the entire March/September rally, 23.6% retracement of the entire rally from the March low and ‘measured top objective’ – and we look for an attempt to establish a floor here.”

“Above 1.2805 has already seen a minor base complete and we look for this to clear the way for a challenge on what we see as more important resistance, starting at 1.2967 and stretching up to 1.3007 – the mid-September highs and 55-day average. A close above here remains needed to confirm a more important base and turn higher with resistance then seen next at 1.3035 initially, then the ‘neckline’ to the August/September top at 1.3125/35. Beyond this latter area can clear the way for a retest of medium-term resistance at 1.3482/1.3514.” 

“Near-term support moves to 1.2833, then 1.2805, with 1.2752 now ideally holding to keep the immediate risk higher.”