GBP/USD: Core trend to turn higher again with resistance seen at 1.3174 - Credit Suisse

FXStreet notes that GBP/USD maintains its base above the mid-September high at 1.3007 and with the 55-day average also removed, analysts at Credit Suisse stay bullish and look for a move back to the ‘neckline’ to the August/September top, today seen at 1.3174 and eventually at medium-term resistance at 1.3482/1.3514.  

“GBP/USD maintains its looked-for break above key resistance from the mid-September high at 1.3007 and with talk of negative interest rates growing and with the USD itself still seen in a core bear trend this should confirm a more important base has been established as we have been looking for to turn the core trend higher again. The close above the 55-day average should also now reinforce the base for a move back to the ‘neckline’ to the August/September top, today seen at 1.3174."

“Whilst we would look for 1.3174 to cap at first, we look for a break in due course with resistance seen at 1.3310 next and eventually at medium-term resistance at 1.3482/1.3514. Beyond here, which we remain biased for would see the completion of a much more significant base and long-term turn higher.”