GBP/USD: Ongoing phase of down move could extend on failure to defend support at 1.2460/1.2420 – SocGen

GBP/USD dribbles below 1.2550. Economists at Société Générale analyze the pair’s outlook. 

Topside hurdle at 1.2720

GBP/USD up move stalled near 1.2720, the 61.8% retracement from July. It has embarked on an initial pullback after this test. The 200-DMA near 1.2460/1.2420 is next support near term. A short-term bounce can’t be ruled out. A move beyond 1.2720 would mean next leg of uptrend.  

In case the pair fails to defend the Moving Average near 1.2460/1.2420, ongoing phase of down move could extend. Next supports are located at 1.2330 and recent pivot low at 1.2187.