GBP/USD to suffer a deeper fall on failure to defend 1.2500/1.2450 – SocGen

Market news

6 February 2024

GBP/USD to suffer a deeper fall on failure to defend 1.2500/1.2450 – SocGen

GBP/USD trades higher but remains on track to test the December lows. Economists at Société Générale analyze the pair’s outlook.

Next potential support is at December low of 1.2500/1.2450

GBP/USD up move stalled after hitting 1.2820 in December and it evolved within a sideways consolidation. It has breached the lower limit of this range denoting risk of pullback.

Next potential support is at December low of 1.2500/1.2450. If the pair fails to defend it, a deeper down move can’t be ruled out towards October peak of 1.2330 and 1.2225.

Reclaiming recent pivot high of 1.2775 would be essential for confirming next leg of uptrend.

Canada Ivey Purchasing Managers Index s.a came in at 56.5, above expectations (55) in January

USD/CAD aims to refresh weekly high above 1.3550 as investors remain risk-averse

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