GBP/USD stays bullish for the 78.6% retrace of the 2021/2022 fall at 1.3414 – Credit Suisse

GBP/USD strength has stalled near term, but analysts at Credit Suissemaintain a bullish outlook for the 78.6% retracement of the 2021/2022 fall at 1.3414.

Support at 1.2909/03 ideally holds

GBP/USD strength has stalled near-term just ahead of price resistance at 1.3148/72, and we continue to look for this to cap at first for a pullback/pause. 

With key resistance at 1.3000 broken and with the USD itself holding a large bearish continuation pattern weakness will stay seen as corrective ahead of a move above 1.3172 in due course with resistance then seen next at 1.3299/1.3300 ahead of the 78.6% retracement of the 2021/2022 fall at 1.3414, which we look to prove a tougher initial barrier.

Support is seen at 1.3020 initially, then 1.2983/75 initially, with 1.2909/03 ideally holding to keep the immediate risk higher. Below can see a deeper pullback to 1.12855/30 but with fresh buyers expected here.