GBP/USD: Break above 1.2850 can lead to extension in uptrend – SocGen

Economists at Société Général analyze GBP/USD outlook.

1.2500/1.2450 is next support

The 50-DMA and December high near 1.2500/1.2450 is an important support zone. A short-term bounce is not ruled out; a break above 1.2850 can lead to an extension in the uptrend. 

In case the pair fails to defend 1.2500/1.2450, there is risk of a deeper downtrend. Next potential supports could be at the May low of 1.2300 and 200-DMA at 1.2120.

See – GBP/USD: Gains should pick up more noticeably above 1.2780 – Scotiabank