GBP/USD could extend the decline on failure to defend 1.2420 – SocGen

FXStreet Insights Team FXStreet

GBP/USD idles around 1.25. Economists at Société Générale analyze the pair’s technical outlook.

Signs of a meaningful up-move are not yet visible

GBP/USD gave a break below the neckline of a Head and Shoulders resulting in a steady decline.

GBP/USD is now close to interim support of 1.2420 representing the 200-DMA. This test could result in a bounce however signals of a meaningful up-move are not yet visible.

Right shoulder level near 1.2745/1.2820 could remain an important resistance zone near term.

If the pair fails to hold above the Moving Average near 1.2420, the phase of downtrend is expected to extend. Next objectives are located at May low of 1.2300 and target of the formation near 1.2170/1.2100.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.