Economists at Credit Suisse maintain a core and long-held bullish outlook for GBP/USD with a major base having been established last year above 1.3514. Cable is set to look for an eventual move above 1.4017 to resolve the current range higher for a move to our 1.4302/77 first bull target and eventually 1.49/1.51.
GBP/USD stays sidelined near-term but the core longer-term outlook is bullish
“GBP/USD extends its consolidation in its now well-defined 1.3669/1.4017 range. With a major base in place above 1.3514 we maintain our long-term bullish outlook but with a break above 1.4017 needed to resolve the range higher for a move back to 1.4237, then our 1.4302/77 first core upside target – the 2018 highs and 38.2% retracement of the 2014/2020 bear trend.”
“Big picture, we continue to look for an eventual move to 1.49/1.51.”
“Near-term support moves to 1.3802/01.”
“Below 1.3670/69 would resolve the range lower for further weakness to the ‘neckline’ to the long-term base, seen starting at 1.3514 and stretching down to 1.3430, where we would look for a fresh and ideally long-lasting floor.”