GBP/USD to extend its rally further to the May high at 1.2668 – Credit Suisse

A strong week for GBP/USD has seen the pair clear with ease the key 200-Day Moving Average, now at 1.2144. Analysts at Credit Suisse look for further strength to the May high at 1.2668.

Initial support seen at 1.2251

“Cable achieved and briefly exceed the 50% retracement of the 2021-2022 fall and August highs at 1.2278/98. With the pair pulling back below here, we continue to look for a consolidation phase to emerge in the near term. Big picture, we look for this to be temporary if indeed seen, with further strength expected in due course to resistance next at 1.2408, ahead of 1.2519 and eventually the May high at 1.2668, potentially even as far as the 61.8% retracement at 1.2758.”

“Support is seen at 1.2251 initially, with 1.2155/35 ideally holding. A break can see a deeper setback to the 13-Day Exponential Average at 1.2049, but with fresh buyers expected here.”