GBP/USD has formed a low near 1.0350 and a bounce is taking shape. But the downtrend is set to persist while cable remains below 1.1760/1.1840, analysts at Société Générale report.

Consolidation phase is on the cards

“After recent sharp up/down swings, a phase of consolidation is not ruled out.”

“Lower limit of the range since 2016 at 1.1760/1.1840 is expected to an important resistance zone near term. Holding below this hurdle, the downtrend could persist.”

“Failure to hold recent higher trough at 1.0550 can lead to one more leg of downtrend towards 1.0350 and next projections at 1.0140/1.0000.”