GBP/USD: Symptoms of a large rebound are still lacking - SocGen

Analysts at Societe Generale suggest that symptoms of a large rebound in GBP/USD pair are still lacking in spite of the pair making substantial ground since last year’s decline.

Key Quotes

“GBP/USD tested support near 1.1752/1.1660 last year, and subsequently saw a recovery phase. The pair has been evolving within a mild up sloping channel (1.2360/1.2245- 1.3040/1.3135). However, symptoms of a large rebound are still lacking. Recently, it achieved an initial projection at 1.3040/1.3135 but the pullback petered out after the formation of a head-and-shoulders pattern. The pattern has been confirmed denoting a decline towards its potential at 1.25 first, and perhaps even towards the weekly channel at 1.2360/1.2245.”