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Jun 04 - 06:55 PM

SocGen: GBP/USD Chart: Make or Break at 1.2820

By eFXdata  —  Jun 04 - 03:00 PM

Synopsis:

Societe Generale assesses the technical outlook for GBP/USD, noting a potential breakout if the pair can surpass the 1.2820 interim resistance level. This breakout could pave the way for further gains towards 1.2900 and possibly extend to 1.3140.

Key Points:

  1. Current Pattern: GBP/USD has been trading within a symmetrical triangle, indicating indecision and a balance between buyers and sellers over the last year. This pattern is characterized by converging trend lines.

  2. Key Resistance: The immediate technical barrier is at 1.2820. A successful breach of this level could signal the start of a more significant upward movement.

  3. Potential Targets: Upon clearing the 1.2820 hurdle, the next targets for GBP/USD are set at 1.2900 and 1.3140, the latter being the peak from last year.

  4. Support Levels: The 200-day moving average (DMA) around 1.2540 serves as the near-term support, providing a floor below which the pair might find buying interest.

Conclusion:

The technical setup for GBP/USD suggests a cautiously optimistic outlook, with a clear path upward if the pair can effectively break through the 1.2820 resistance. Achieving this would likely catalyze further gains, targeting 1.2900 and potentially extending to 1.3140, reflecting a significant bullish shift in market sentiment.

Screenshot_2024-06-04_at_9.56.38___AM.png

Source:
Société Générale Research/Market Commentary

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