GBPUSD: Down move should resume - SocGen

Research Team at Societe Generale, suggests that the GBP/USD violated a multi-decade support and breached a steeper descending channel (1.2870), indicating long-term bearish signals.

Key Quotes

“This is confirmed by the monthly stochastic, which remains in negative territory (below 25%). The pair did rebound recently, however, and achieved the maximum potential at 1.2660. Given likely long-term bearish price action, pullbacks are expected to remain corrective. The pair has breached a daily trend support, which suggests that the recovery has run its course and that the down move should resume. Thus, GBP/USD should head towards the mid-October high of 1.2330 and perhaps even towards 1.2090/30.”