GBP/USD has staged a pullback after struggling to reclaim the 200-day moving average (DMA) near 1.3710/1.3750. A break above here would see cable completing an inverse head and shoulders pattern, economists at Société Générale report.

First potential support is at 1.3485/1.3455

“GBP/USD appears to be evolving within the right shoulder of a possible Inverse Head and Shoulders. The pattern would complete if the pair establishes itself above the neckline at 1.3710/1.3750.” 

“First potential support is at 1.3485/1.3455 representing the trend line drawn since December. If this gets violated, a revisit of recent low at 1.3358 is not ruled out.”

“1.3630 caps immediate upside.”