GBP/USD has seen a pullback toward the 200-Day Moving Average (DMA) at 1.1913. Economists at Société Générale note that risks are tilted to the downside.

Neckline at 1.1840/1.1800 is a crucial support

“The run of decent UK macro hasn’t rubbed off on GBP/USD and near-term risks remains skewed to the downside on the outlook for a widening of Fed/BoE policy spread.”

“Cable continues to toil around the 200-DMA at 1.1913 and could be under threat if Powell and US NFP elicit fresh Dollar buying this week.”

“The price action has turned idle denoting lack of clear direction. Neckline at 1.1840/1.1800 is a crucial support.”