Societe Generale Research discusses EUR/USD and GBP/USD technical outlook. SocGen highlights the importance of the 1.11/1.1042 zone in EUR/USD, and 1.2413/1.2370 zone in GBP/USD.
"EUR/USD has faltered after giving a temporary break above the 200-DMA (now at 1.1335). The recovery has fallen short of the key hurdle of 1.1450/63 denoting peak of March. This must be reclaimed for a large rebound. Shorter term, it is staging a pullback however trough formed in May at 1.11/1.1042 is a critical support," SocGen notes.
"GBP/USD has struggled at recent peak near 1.2758/1.2815 after which it has staged a decline. It is flirting with the trend since 2016. The lows of last January at 1.2413/1.2370 remain a significant support. Should this breach, a larger downside can’t be ruled out in GBP/USD. A move beyond 1.2758/1.2815 is essential for signs of rebound," SocGen adds.