GBP/USD maintains a strong tone after recovering back above its 200-Day Moving Average. Economists at Credit Suisse expect the pair to test the 1.2447/49 year-to-date highs.

Support at 1.2009 ideally holds to keep the immediate risk higher

“GBP/USD is attempting to push above the 1.2270 mid-February high and downtrend from February 2022. We continue to look for a sustained break to clear the way for a fresh look at the 1.2447/49 YTD highs, where we would look for a fresh cap again. Should strength directly extend though we would see resistance next at 1.2668/1.2783 – the May 2022 high, 61.8% retracement of the 2021/2022 fall and long-term downtrend from May 2021.

“Support at 1.2009 now ideally holds to keep the immediate risk higher. A break can see a retest of the 200-DMA, currently at 1.1895.”