GBP/USD: Risk stays seen higher with resistance next at 1.2894 – Credit Suisse

GBP/USD continues its steady push higher after breaking key resistance from its 200-day average and with the June high at 1.2808/17 now cleared, analysts at Credit Suisse stay biased higher with next resistance next at 1.2894, then at 1.2977 and eventually at the more important long-term downtrend from the 2007 peak at 1.3128.

Key quotes

“We stay biased higher with resistance seen at 1.2894 next – the 50% retracement of the entire fall from the 2018 peak. Whilst a pullback from here should be allowed for, we look for a break in due course with resistance then seen next at 1.2936 ahead of 1.2977 and then eventually the long-term downtrend from the 2007 peak, currently seen at 1.3128. With the February and March highs not far above at 1.3200/15, we expect this to then prove a tougher barrier.”

“Support moves to 1.2804 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 1.2717/01 ideally holding further weakness.”