GBP/USD was able to return above 1.14. However, the pair is on the back foot again. Economists at Société Générale believe that cable is unlikely to surpass the 1.15 level.

Break above 1.1495/1.1550 is essential for extension in bounce

“Cable is in vicinity to first resistance zone of 1.1495/1.1550 representing the 50-DMA and the 61.8% retracement from August. It is worth noting that the pair has struggled to establish itself beyond this MA since breaking it decisively in February.”

“Daily RSI is also near the upper end of bearish territory denoting a cross above zone of 1.1495/1.1550 is essential for extension in bounce. Failure can lead to continuation in downtrend.”

“1.15 for GBP/USD is not realistic we think without a further round of dollar selling.”