GBP/USD: Recovery to extend further with next resistance at 1.3875 – Credit Suisse

GBP/USD has finally broken above a cluster of resistances including its 200-day moving average (DMA) at 1.3807/36. Analysts at Credit Suisse look for a deeper swing higher in the broader converging range with resistance seen next at 1.3875/88.

Initial support seen at 1.3807/02

“Resistance is seen next at 1.3875/88 ahead of the 50% retracement at 1.1910, with the next major resistance cluster seen at 1.3968/90 – the July highs, 61.8% retracement and top of the converging range. We would look for a fresh top here.” 

“Support is seen at 1.3807/02 initially, then 1.3782, with a break below the short-term uptrend at 1.3766/59 needed to ease the immediate upside bias. Below the 1.3731 mid-week low is needed to mark a ‘false’ break higher for a fall back to 1.3680.”