If GBPUSD can get past major resistance at around the 1.43 level, there is little to stop it reaching 1.50, according to David Sneddon and his team at Credit Suisse in London.
Sneddon says that with a MACD “buy” signal in place, he expects GBPUSD to break above the 1.4210 level (76.8% Fibonacci retracement) and thereafter test a major barrier at 1.4285/1.4385, which comes from the falling 200-week moving average, 50% Fibonacci retracement of the 2014 to 2016 decline and the January high (see Chart). He expects this level to initially hold, though a break in due course would open up the 1.5014/20 level, with little resistance leading up to it.
On the downside, Sneddon says support can be found at 1.4127 and then 1.4085/76, below which the immediate upside risk would ease. Overall, however, Sneddon remains bullish on GBPUSD for the short- to medium-term (1 day to 1 month).