GBP/USD: Failure to hold 1.3160 to open up significant losses toward 1.30 – SocGen

GBP/USD is drifting towards the low of December at 1.3160 – removal of which would clear the way for a substantial drop to the 1.30 level, economists at Société Générale report. 

Initial bounce not ruled out

“Defending 1.3160 could result in a bounce, however, daily Ichimoku cloud at 1.3460 is expected to be a hurdle.”

“Below 1.3160, next potential support is at 1.3000.”