GBP/USD turns higher with the potential downtrend from December seen at 1.2855 – Credit Suisse

GBP/USD breaks above the 200-day average, currently trading at 1.2777 with the 1.2855 potential downtrend from December to be exposed today as the trend stays seen higher, per Credit Suisse.

Key quotes

“With the USD outright expected to stay under pressure we maintain our view we are seeing a more significant turn higher with resistance see next at 1.2817 – the 78.6% retracement of the fall from last December - then the potential downtrend from December 2019, today seen at 1.2855, which we would expect to cap at first. Big picture though, we suspect this could eventually lead to a challenge on medium-term resistance at 1.3200/15 – the highs of February and March and downtrend from June 2015 – which we expect to prove a formidable barrier.” 

“Support rises to 1.2746/36 initially, with 1.2707 ideally holding to keep the immediate risk higher. Below would raise the prospect of further near-term ranging and a retest of the 200-day at 1.2687. Below 1.2619 is needed to mark a near-term top.”