GBP/USD: Downtrend from June at 1.3808/16 to try and cap further strength – Credit Suisse

GBP/USD has broken above its 55-day average (DMA) at 1.3731. Analysts at Credit Suisse see scope for a test of the downtrend from June at 1.3808.

Initial support is seen at 1.3690 

“We see scope for the recovery to extend further yet with resistance above 1.3774 seen next at the downtrend from the June peak, now seen at 1.3808/16. With the key 200-day average seen not far above at 1.3847, we look for a better cap here.”

“A close above 1.3845 though would reassert a broader sideways range, with resistance then seen next at 1.3914.”

“Support is seen at 1.3690 initially, with a break below 1.3667 needed to ease the immediate upside bias for a fall back to 1.3589, then 1.3544. Beneath this latter level though is needed to clear the way for a retest of the 1.3411 recent low.”