GBP/USD is gradually approaching potential support at 1.1840/1.1740. A break below this region would clear the way towards the low carved out in 2020 near 1.1410, strategists at Société Générale report.

Recent pivot high of 1.2670 must be overcome to affirm an extended rebound

“The pair is drifting gradually towards potential support of 1.1840/1.1740, representing the lows of 2016 and projections. Defending this zone could result in a short-term bounce.”

“The recent pivot high of 1.2670 is an important resistance. This must be overcome to affirm an extended rebound towards 1.2810, the 38.2% retracement from June 2021 and December low of 1.3100/1.3160.” 

“In the event that the ongoing decline persists below 1.1740, the pair could revisit the low carved out in 2020 near 1.1410.”