GBP/USD loses grip on key support – Société Générale

GBP/USD has slipped below key technical levels, breaking an ascending trend line and falling under its 50-day moving average, signaling fading bullish momentum. With the daily MACD turning negative, a failure to reclaim 1.3500 could open the way for a deeper slide toward 1.3250 and even the May low at 1.3130, Société Générale's FX analysts note.

Sterling risks deeper drop below 1.35

"GBP/USD has experienced a steady pullback after encountering strong resistance near 1.3785 earlier this month. It has fallen below the 50-DMA and breached an ascending trend line since January, signaling weakening upward momentum."

"This is also highlighted by the daily MACD, which has shown negative divergence and has now moved into negative territory. Failure to reclaim the MA at 1.3500 may lead to a deeper decline. The next objectives could be located at the projection at 1.3250 and the May low of 1.3130."