GBP/USD: Pause within the overall downtrend - SocGen

Research Team at Societe Generale, explains that the GBP/USD pair recently rebounded from the lower bound of the triangle pattern and suggests that it is still likely just a pause within the overall downtrend

Key Quotes

“The downtrend in GBP/USD was accelerating until October 2016, when it came across an intermittent projection at 1.1752/1.1660. Since then, it has remained confined within two converging lines (triangle), which is similar to the temporary consolidation phases seen during February-May and July-September 2016. The pair recently rebounded from the lower bound of the pattern. However, it is still likely just a pause within the overall downtrend. The triangle limit and weekly channel (orange dash) at 1.2680/1.2780 remains an important hurdle.”