Societe Generale Research discusses GBP/USD technical outlook and sees a scope for a move towards 1.4380 in the near-term.
"GBP/USD has approached towards a multi-month ascending trend line near 1.3670 (now at 1.3800), forming an Inverted Head and Shoulders. Breakout from the formation points towards further upside. The pair is likely to head higher towards the target of the pattern, near 1.4350/1.4380. This could be an interim hurdle. If this is overcome, the pair could experience a much larger upmove," SocGen notes.
"A brief consolidation has been under way since the pair reached a high of 1.4240 in February; however, the neckline of the Inverse Head and Shoulders at 1.4000 and 1.3800 should be short-term support levels," SocGen adds,