Credit Suisse discusses GBP/USD technical outlook and maintains a bullish bias in the near-term.
"With a bullish “outside week” still in place as well as the “neckline” to its August top removed, we remain of the view the broader risk stays higher and our core view as we first highlighted in late September is that we are in the process of forming the potential “right -hand shoulder” to a major basing process. Beyond 1.3310/19 should reassert the rally for a move to 1.3403/09 next and eventually back to long -term price and “neckline” resistance at 1.3473/1.3514. Above here, which we eventually look for is needed to see a major base secured, clearing the way for a move above 1.4300," CS notes.
"Near -term support rises to 1.3240, then 1.3193, with 1.3166/62 now ideally holding. Below can see a fall back to 1.3127, with a break below 1.3106 needed to warn of a near -term in -range top," CS adds.