GBP/USD: Resistance from the 200DMA at 1.2176 set to cap initially – Credit Suisse

The GBP/USD spotlight turns to its 200-Day Moving Average (DMA), currently seen at 1.2176. Economists at Credit Suisse expect Cable to struggle to surpass this hurdle.

Support at 1.2025 needs to hold to keep the immediate risk higher

“We look for the 200DMA, now at 1.2176, to cap at first on a closing basis for some fresh consolidation. However, our bias would be to view a pause again as temporary, ahead of a close above the 200DMA in due course for a test of the 50% retracement of the 2021-2022 fall and August highs at 1.2278/98. Our bias remains to look for this to then cap to define the top of a broader range. Should strength directly extend, we see resistance next at 1.2668.” 

“Support at 1.2025 needs to hold to keep the immediate risk higher. Below can see a setback to 1.1958/52, then the 13DMA and price support at 1.1910/00 but with fresh buyers expected to show here.”