Synopsis:

SocGen analyzes the technical outlook for GBP/USD, highlighting the critical resistance level at 1.3135. The pair has recently pulled back from its interim highs, but a rebound is anticipated.

Key Points:

• Recent Price Action:
  GBP/USD has reached interim projections near 1.3450/1.3480 and is currently experiencing a short-term pullback. The pair is approaching the recent pivot low of 1.2990/1.2940, which coincides with a multi-month ascending trend line.

• Immediate Resistance Level:
  The high of 1.3135 from last week represents the first layer of resistance for the pair in the near term. A break above this level could trigger a more significant bounce in the GBP/USD.

• Potential Upside Targets:
  Should GBP/USD successfully cross above 1.3135, it may extend its rally towards the August high of 1.3270 and potentially reach the recent peak around 1.3450/1.3480.

Conclusion:

In summary, the GBP/USD pair is at a crucial juncture, with resistance at 1.3135 serving as a make-or-break level. A break above this threshold could lead to further gains, while a failure to maintain momentum may result in a retest of lower levels. Traders should closely monitor these key levels for potential trading opportunities.