GBP/USD needs to break 1.3403/09 for a move back to long-term resistance at 1.3472/1.3514 – Credit Suisse

GBP/USD has opened the week strongly for a break above resistance at 1.3310/19 for the completion of a near-term bullish “triangle” continuation pattern to clear the way for a challenge on long-term resistance at 1.3472/1.3514, per Credit Suisse. 

Key quotes

“GBP/USD has opened the week strongly for a break above resistance at 1.3310/19 as looked for - the 78.6% retracement of the September fall and recent high – for the completion of a near-term bullish ‘triangle’ continuation pattern. This should add weight to our core bullish view from September that we are in the process of forming the potential ‘right-hand shoulder’ to a major basing process for a move to 1.3403/09 next and eventually back to long-term price and ‘neckline’ resistance at 1.3472/1.3514.” 

“Whilst a fresh rejection from the long-term resistance at 1.3472/1.3514 should be allowed for, we continue to look for an eventual break to see a major base secured, clearing the way for a move above 1.4300.” 

“Near-term support moves to 1.3273, with 1.32494/7 now ideally holding to keep the immediate risk higher. Below can see a fresh setback to the 13-day average at 1.3210, with an immediate bullish tone maintained whilst above 1.3196/92.”