GBP/USD needs to clear its March high at 1.4017 to reinforce its “double bottom” base above 1.3919 to reinforce the view that the decline from the 1.4237 late February peak remains a corrective phase only within the core longer-term uptrend, the Credit Suisse analyst team briefs.
Support moves to 1.3919/16
“Above 1.3973, the cable can clear the way for a retest of 1.4009/17, above which should further reinforce the base and our bullish outlook for strength to the ‘measured base objective’ at 1.4169 and eventually a retest of the February YTD highs at 1.4237. We look for a move above here in due course for our 1.4302/77 first and long-held upside target – the 38.2% retracement of the 2014/2020 bear trend and key highs of 2018.
“Support remains seen initially at the point-of-breakout from the base at 1.3919/16, with the 38.2% retracement of the April rally and 13-day exponential average at 1.3879/68 ideally holding to keep the immediate risk higher. We shall maintain an immediate tactical bullish bias though whilst above 1.3810/09.”