GBP/USD to extend its recovery, initial resistance awaits at 1.3910 – Credit Suisse

GBP/USD maintains its break above a cluster of resistances including its 55-day and 200-day averages. Economists at Credit Suisse look for a deeper swing higher in the broader converging range, with next resistance seen at 1.3910.

See: GBP/USD to grind higher towards the 1.4018 resistance – Commerzbank

Support is seen at 1.3817/07

“Resistance is seen next at 1.3888/92 next ahead of the 50% retracement of the June/July fall at 1.3910. A pause here at first should be allowed for ahead of a move to the next major resistance cluster seen at 1.3967/90 – the July highs, 61.8% retracement and top of the converging range.” 

“We would look for a fresh top here. Support is seen at 1.3838 initially, with 1.3817/07 now ideally holding to keep the immediate risk higher in the range. A break can see a deeper pullback to short-term uptrend at 1.3782/75, with fresh buyers expected here.”

“Below 1.3731 is needed to warn of a move back to the lower end of the range.”