GBP / USD needs to move past the March high of 1.4017 to reinforce its ‘double bottom’ base above 1.3919 to reinforce the view that the decline from the 1.4237 high in late February remains a corrective phase only within. longer-term central uptrend, Credit Suisse analysts explain.
“Above 1.3973, GBP / USD may clear the way for a retest of 1.4009 / 17, above which should further strengthen the base and our bullish outlook of strength for the ‘measured base target’ at 1.4169. and, finally, for a new test of this year’s highs reached in February at 1.4237. We expect a move above here in due time for our first upside target at 1.4302 / 77, the 38.2% retracement of the 2014/2020 downtrend and key 2018 highs.”
Support remains initially seen at the breakout point from the base at 1.3919 / 16, with the 38.2% retracement of the April rally and the 13-day exponential average at 1.3879 / 68 ideally holding to maintain immediate risk to the upside. However, we will maintain an immediate tactical bullish bias as long as it is above 1.3810 / 09 ”.