GBP/USD: Weekly close above 1.3514 to mark an important change of trend higher – Credit Suisse

The GBP/USD pair has surged higher for what looks to be a conclusive break above the 2019 high at 1.3514. A weekly close above here should confirm the long-looked-for major base with next resistance seen at 1.3620 next, then 1.3710/20, per Credit Suisse.

See – GBP/USD: 1.3515/55 is break point to 1.4377 – Commerzbank

Key quotes

“GBP/USD has surged higher for what looks to be a conclusive break above the 2019 high at 1.3514. Assuming we see a weekly close above here, which we see no reason not to, this should confirm the major base we have been looking for from September to mark an important change of trend higher.” 

“We would see resistance at 1.3620 initially, ahead of 1.3710/20 – the ‘neckline’ to the early 2018 top and 38.2% retracement of the entire 2007/2020 bear market. We would expect consolidation here, but big picture, we continue to look for a move above 1.4300 and eventually on to 1.5000.”

“Support moves to 1.3522 initially, then 1.3496, with the immediate risk seen higher whilst above 1.3451/35. Below would raise the prospect of further range trading and a fall back to 1.3402, potentially 1.3359/48.”