GBP/USD: Moving to new highs for the year, eyes on tough resistance at 1.2668/1.2758 – Credit Suisse

GBP/USD has already moved above the 1.2447/49 highs of December and January. Analysts at Credit Suisse stay bullish for what they look to be tougher resistance at 1.2668/1.2758, which includes its downtrend from May 2021.

A break below 1.2274 can see a fall back to 1.2190/70

“With a bullish moving average ‘golden cross’ in place we maintain our core positive outlook for resistance next at 1.2668/1.2758 – the May 2022 high, 61.8% retracement of the 2021/2022 fall and long-term downtrend from May 2021. Our bias would then be to look for a cap here for a fresh phase of consolidation. Should strength directly extend though, we see resistance next at 1.2894, then 1.3000.”

“Support at 1.2274 now ideally holds to keep the immediate risk higher. A break can see a fall back to 1.2190/70 but with fresh buyers expected here.”