British Pound: 1.3440–1.3420 support in focus against US Dollar - Societe Generale

Societe Generale highlights GBP/USD trading just above its 200-day moving average, with the August trough around 1.3440–1.3420 acting as a key support zone. They see scope for a brief bounce, but stress that a move above 1.3565 is needed to confirm a broader recovery, while failure to hold 1.3420 could open 1.3360 and 1.3270 on the downside.

Key support zone under scrutiny

"GBP/USD has retraced toward the 200-DMA and the August trough at 1.3440/1.3420, which could act as a potential support zone."

"A brief bounce is likely; however, a move above the recent pivot high at 1.3565 will be crucial to confirm a broader upward move."

"If the pair fails to hold above 1.3420, the decline may deepen."

"The next potential objectives could be located at projections of 1.3360 and 1.3270."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)