GBP/USD: Upside momentum is deteriorating sharply – Credit Suisse

GBP/USD maintains its break of key resistance from the downtrend from June 2021. Economists at Credit Suisse analyze the pair’s technical outlook. 

Support at 1.2687/86 needs to hold to suggest the risk can still marginally stay seen higher

GBP/USD maintains its break above key resistance from its confirmed downtrend from June 2021 but weekly RSI momentum has been unable to confirm the new highs and daily MACD momentum is threatening to turn lower and we very much shift to a cautious bullish footing. 

Support at 1.2687/86 needs to hold to suggest the immediate risk can stay higher with resistance seen at 1.2759 initially, and with a break above 1.2850 seen needed to clear the way for strength to 1.2894/1.2900 next and then what we look to be tougher resistance at the March/April 2022 lows at 1.2973/1.3000, where we will look for a better cap at first.

Below 1.2687/86 would see the 13-day exponential average and price support removed to see the near-term risk shift lower with support seen next at 1.2625, then the back of the broken downtrend and uptrend from September last year at 1.2586/50, which we would look to try and hold.