GBP/USD to suffer a deeper fall on failure to defend 1.2500/1.2450 – SocGen

GBP/USD trades higher but remains on track to test the December lows. Economists at Société Générale analyze the pair’s outlook.

Next potential support is at December low of 1.2500/1.2450

GBP/USD up move stalled after hitting 1.2820 in December and it evolved within a sideways consolidation. It has breached the lower limit of this range denoting risk of pullback. 

Next potential support is at December low of 1.2500/1.2450. If the pair fails to defend it, a deeper down move can’t be ruled out towards October peak of 1.2330 and 1.2225.

Reclaiming recent pivot high of 1.2775 would be essential for confirming next leg of uptrend.