GBP/USD: Close above resistance at 1.2779/93 needed to ease immediate downside bias – Credit Suisse

GBP/USD is holding above key support from the 1.2590 late June low. Economists at Credit Suisse analyze the pair’s technical outlook.

GBP/USD needs to hold support at 1.2590 to avoid a top

A close above resistance from its 13-day exponential average and recent reaction high at 1.2779/93 is now seen needed to ease the immediate downside bias, but with a break above the recent ‘outside day’ high at 1.2997 seen needed to reassert the broader uptrend for strength back to the 1.3143 high and eventually 1.3400/14.

A close below 1.2590 though would instead see a price top established to clear the way for a more concerted decline to test the rising 200-DMA and May low at 1.2345/07, but with fresh buyers expected to show here.