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GBP/USD maintains its break to a new high for the year to reassert the core uptrend and reinforce the existing long-term base above 1.3514. Economists at Credit Suisse see resistance next at 1.3890/95, ahead of 1.3997/1.4000 and eventually the key 2018 highs and 50% retracement of the 2014/2020 bear trend at 1.4302/77.

Key quotes

“We see resistance at 1.3890/95 ahead of 1.3997/1.4000, where we see scope for an initial pause. Above here in due course though can see resistance at 1.4091 next with our first major objective at 1.4302/77 – the key 2018 highs and 50% retracement of the 2014/2020 bear trend – which we expect to cap for a fresh consolidation phase.” 

“Big picture, we continue to look for an eventual move to 1.49/1.51.”

“Support is seen rising to 1.3821 initially, with 1.3803 now ideally holding to keep the immediate risk higher. Below can see a deeper setback to 1.3161/58, potentially the 13-day exponential average at 1.3731, but with a better floor expected here.”