GBP/USD to post bullish technical signal on a move above 1.3710/1.3750 – SocGen

FXStreet Insights Team FXStreet

GBP/USD has staged a pullback after struggling to reclaim the 200-day moving average (DMA) near 1.3710/1.3750. A break above here would see cable completing an inverse head and shoulders pattern, economists at Société Générale report.

First potential support is at 1.3485/1.3455

“GBP/USD appears to be evolving within the right shoulder of a possible Inverse Head and Shoulders. The pattern would complete if the pair establishes itself above the neckline at 1.3710/1.3750.”

“First potential support is at 1.3485/1.3455 representing the trend line drawn since December. If this gets violated, a revisit of recent low at 1.3358 is not ruled out.”

“1.3630 caps immediate upside.”

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 appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.