GBP/USD trading higher but remains on track to test the December lows. Economists from Société Générale analyze the pair’s outlook.
Another potential support is at the December low of 1.2500/1.2450
GBP/USD’s rally has stalled after reaching 1.2820 in December and has been trending in a sideways consolidation. It crossed the lower end of this range indicating a risk of withdrawal.
Another potential support is at the December low of 1.2500/1.2450. If the pair does not defend it, a deeper move towards the October peak of 1.2330 and 1.2225 cannot be ruled out.
Retrieving the recent pivot top of 1.2775 would be essential to confirm the next part of the uptrend.