GBP/USD: Wary of chasing strength aggressively further from here – Credit Suisse

The GBP/USD uptrend is losing momentum and analysts at Credit Suisse do not look to chase strength aggressively.

Test of the March/April 2022 lows at 1.2973/1.3000 not ruled out

Although GBP/USD has broken key resistance from its confirmed downtrend from June 2021 the move to a new high has not been confirmed by weekly RSI momentum and we are wary of chasing strength aggressively further from here. Saying this though, we would still not rule out a test of the March/April 2022 lows at 1.2973/1.3000 but our bias would be to then look for a cap here. 

Support is seen at the back of the broken downtrend, potential uptrend from last September and 55-DMA at 1.2580/30, which we look to ideally hold. A closing break lower though would be seen to reinforce the negative momentum backdrop, exposing support next at 1.2310.