Economists at Credit Suisse discuss GBP outlook and expect Cable to extend its gains.

Break below support at 1.2344 to warn of a deeper setback

“We still see scope for one final leg higher to our core target at 1.2668/1.2758 – the May 2022 high, 61.8% retracement of the 2021/2022 fall and long-term downtrend from May 2021. Our bias would then be to look for an important top here.”

“Below support at 1.2344 stays seen needed to mark a minor top to warn of a deeper setback to the 55-DMA and price support at 1.2255/1.2190, but with this ideally holding.”