GBP/USD to challenge major resistance at 1.3473/1.3514 – Credit Suisse

GBP/USD is expected to see a break above 1.3310/19 for a test of long-term resistance at 1.3473/1.3514, economists at Credit Suisse apprise.

Key quotes

“GBP/USD is pushing steadily higher as expected after being supported above its 13-day average, now at 1.3162 and we remain of the view the recent pullback has been corrective only ahead of a retest of resistance at 1.3310/19 – the 78.6% retracement of the September fall.” 

“Beyond 1.3310/19 should reassert the rally for a move to 1.3403/09 next and eventually back to long-term price and ‘neckline’ resistance at 1.3473/1.3514. Above here, which we eventually look for is needed to see a major base secured, clearing the way for a move above 1.4300.” 

“Near-term support rises to 1.3240, then 1.3193, with 1.3166/62 now ideally holding. Below can see a fall back to 1.3127, with a break below 1.3106 needed to warn of a near-term in range top.”