GBP/USD to test the next support zone at 1.3130/1.3000 – SocGen
|The upward move in GBP/USD petered out after two failed attempts to overcome 1.4240 earlier this year in February and June. A steady downtrend has taken shape from those levels. Economists at Société Générale note the prevalence of downward momentum and expect the cable to test the 1.3130/1.3000 support zone.
Overcoming 1.3800/1.3840 will denote the return of bullish momentum
“GBP/USD has now reached the weekly Ichimoku cloud and is within touching distance of the potential support zone at 1.3130/1.3000, representing projections for the downward move and close to the 38.2% retracement from 2020.”
“Defending the 1.3130/1.3000 zone could result in a bounce; however, the 200-DMA near 1.3800/1.3840 will be a crucial resistance level in the near-term. Overcoming this hurdle will be pivotal, as it will denote the return of bullish momentum.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.