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GBP/USD strength is seen as corrective and economists at Credit Suisse look for a fresh move lower in Q2.

Key quotes

“GBP/USD has seen a sharp rebound but with a large bear ‘triangle’ now established this is viewed as a corrective bounce, and we look for the trend to turn lower again in Q2.” 

“We look for resistance at 1.2517/1.2726 to cap further strength for a clear break of the long term uptrend from 1985 for a fresh look at the 1.1412 low from March.”

“Above 1.2726 would suggest the trend has shifted neutral, with resistance then at 1.3200.”