GBP/USD rangebound. Economists at Société Générale analyze the pair’s outlook.
Break of 1.2820 would confirm return of upward momentum
GBP/USD has undergone a sideways consolidation after reaching 1.2820 late last year.
Interestingly, Cable is evolving within a Cup and Handle formation. The pattern points towards potential upside however a break above recent peak at 1.2820 is essential for confirmation. Once this breakout materializes, the pair could inch higher towards the high achieved last year near 1.3140.
The 200-DMA at 1.2550/1.2500 is key support near term.
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