GBP/USD rebounds sharply, eyes channel top – Société Générale

GBP/USD has bounced strongly from the 50-day moving average, clearing a key pivot and approaching the top of its multi-month channel. While the rally appears extended, technical signals suggest limited downside for now, with key targets seen at 1.3270 and 1.3390/1.3430, Société Générale's FX analysts note.

Pound approaches key resistance after 50-DMA hold

"GBP/USD has swiftly rebounded after defending the 50-DMA at 1.2705 (now at 1.2800). It has crossed recent pivot high and is approaching the upper limit of a multi-month channel. The move is a bit stretched however signals of a large decline are not yet visible."

"March high of 1.3010 is likely to provide support if a short-term pullback develops. Next objectives are located at projection of 1.3270 and the peak of last September at 1.3390/1.3430."