GBP/USD: Heading towards 1.2670/1.2720 – SocGen

GBP/USD captures 1.26. Economists at Société Générale analyze the pair’s technical outlook.

200-DMA at 1.2450 is near term support 

GBP/USD recently broke out from a base and reclaimed the 200-DMA. This has resulted in an extended bounce leading the pair towards neckline of previous Head and Shoulders.

Daily MACD has entered within positive territory denoting regain of upward momentum. 

The pair is likely to inch higher towards 1.2670/1.2720, the 61.8% retracement from July and 1.2880.  

The 200-DMA at 1.2450 should cushion near term downside.