GBPUSD is holding its long term upward trendline and attempting a base at current levels. We are turning bullish targeting 1.6379/1.6400 initially.
GBPUSD has gained traction at the flagged long term bull trendline which is located circa 1.6274/20. We expect this to continue to hold and for the market to complete a bullish double bottom pattern by breaking through 1.5881. We highlight the 200 DMA at 1.5889, however we do expect a continuation through here and for the market to recover higher back to re-test the 1.6379/1.6440 resistance zone. We stress that a break through here would expose major hurdles at 1.6748 and then 1.7044. Only a sustained breach of 1.5620/00 would imply a long term trendline break exposing the 1.5506 retracement support initially and then eventually the 1.5268/33 support.
Trade Strategy: Buy at 1.5790 targeting 1.6400 stop at 1.5590.
Credit Suisse