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GBP/USD broke above the June high at 1.2808/17 yesterday and analysts at Credit Suisse stay biased higher though the cable is posting small losses today, down -0.08% to 1.2875.  Next resistance is seen at the medium-term downtrend from the 2014 peak at 1.3127 and then at the key Q1 2020 highs at 1.3200/15. The market should now ideally hold above it’s 1.2813/07 breakout point. 

Key quotes

“GBP/USD is consolidating in the very near-term below resistance at 1.2894/2904 – the 50% retracement of the entire fall from the 2018 peak – after its earlier breakout above key resistance at the June high and 78.6% retracement of the entire fall from late last year at 1.2808/17.”

“This important breakout keeps us biased higher and looking for a break above 1.2894/2904 in due course, with resistance seen next at 1.2936, ahead of 1.2977 and then eventually the long-term downtrend from the 2015 peak, currently seen at 1.3127. With the February and March highs not far above at 1.3200/15, we expect this zone to then prove a tougher barrier.” 

“Support stays at 1.2813/07 initially, then 1.2785, with 1.2773/68 ideally holding to keep the immediate risk higher. A break can see a deeper pullback, but with key price and 200-day average support at 1.2717/02 ideally holding further weakness.”