GBP/USD continues to hold support from its 200-Day Moving Average, never mind its key 1.1841 January low. Analysts at Credit Suisse look for the broader risk to eventually turn higher again from here.

GBP/USD to stay rangebound for now

“Cable continues to hold support from the 200-DMA at 1.1927 as looked for, never mind the key 1.1841 January low, and we continue to look for this to hold to keep the market trapped in a range of ~1.1850-1.2450.”

“Post this rangebound phase, we are still biased towards an eventual break above 1.2447/49 to target the May high and 61.8% retracement of the 2021/2022 fall at 1.2668/1.2758.” 

“A break below 1.1841 at any stage would complete a bearish ‘double top’ to signal a much deeper sell-off, and likely a stronger USD rally more broadly, with support seen next at 1.1646.”