GBP/USD: A larger uptrend is not ruled out on a cross above 1.2670/1.2750 resistance – SocGen

Cable is steady near 1.26 after 1% bounce yesterday. Economists at Société Générale analyze GBP/USD technical outlook.

1.2410 is a crucial support

GBP/USD recently defended a rising support line near 1.2300 (now at 1.2410). It has experienced a steady rebound and is now challenging a resistance line since 2021. 

Daily MACD is attempting an entry into positive territory denoting prevalence of upward momentum. 

Next potential hurdle is located at last month high of 1.2670/1.2750 which is also the 61.8% retracement from 2021. If the pair crosses this resistance, a larger uptrend is not ruled out. 

Support line at 1.2410 is a crucial support.