GBP/USD: The trend turns higher with resistance seen at the 1.4238 YTD high – Credit Suisse

GBP/USD maintains its base above the March highs at 1.4001/17. Economists at Credit Suisse look a move back to 1.4238, then to the first core upside target of 1.4302/77.

Support is seen at 1.4017/07

“We stay directly bullish and look for a move back to 1.4182 initially, then the 1.4238 high, ahead of our first core upside target of 1.4302/77 – the 2018 highs and 50% retracement of the 2014/2020 bear trend.” 

“Whilst we would expect to see a fresh phase of consolidation from the 1.4302/77 area, we continue to look for an eventual clear break for our 1.49/1.51 ultimate objective.”

“Support moves to 1.4108 initially, below which can see a setback to 1.4075, then 1.4048/42, potentially the ‘“neckline’ to the base at 1.4017/07, which we now look to try and hold.” 

“We shall maintain a tactical bullish bias whilst above 1.3859.”