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GBP/USD needs to clear its March high at 1.4017 to reinforce its “double bottom” base above 1.3919 to reinforce the view that the decline from the 1.4237 late February peak remains a corrective phase only within the core longer-term uptrend, the Credit Suisse analyst team briefs.

Support moves to 1.3919/16

“Above 1.3973, the cable can clear the way for a retest of 1.4009/17, above which should further reinforce the base and our bullish outlook for strength to the ‘measured base objective’ at 1.4169 and eventually a retest of the February YTD highs at 1.4237. We look for a move above here in due course for our 1.4302/77 first and long-held upside target – the 38.2% retracement of the 2014/2020 bear trend and key highs of 2018.  

“Support remains seen initially at the point-of-breakout from the base at 1.3919/16, with the 38.2% retracement of the April rally and 13-day exponential average at 1.3879/68 ideally holding to keep the immediate risk higher. We shall maintain an immediate tactical bullish bias though whilst above 1.3810/09.”