GBP/USD set to hold support at 1.1710 for an eventual test of the 200DMA at 1.2216 – Credit Suisse

GBP/USD strength has stalled. Nevertheless, analysts at Credit Suisse stay bullish for an eventual test of the key long-term 200-Day Moving Average, currently seen at 1.2216.

Move above 1.1952/58 needed to reassert an upward bias again

“We see scope for further consolidation and potentially a pullback also. With key resistance from the 55DMA and downtrend from February broken though, our bias remains to view this as a temporary pause only. 

“Support is seen at 1.1762 initially, below which can see a retreat to next support at the 13DMA and price support at 1.1718/10, which we look to ideally hold. Should weakness extend, we would see scope for a test of the 1.1647 August high, but with fresh buyers expected to be seen here, if reached.” 

“Above 1.1952/58 is needed to reassert an upward bias again for a test of what we see as more important resistance at the 200DMA of 1.2216, then potentially the 50% retracement of the 2021-2022 fall at 1.2298.”