GBP/USD: Wobble in cable may not be over, scope for a drop to 1.3570/10 – SocGen

The chart looks precarious for GBP/USD. The 200-day moving average cracked at 1.3698 and technically it is too soon to characterise the cable as technically oversold. Next support awaits at the 1.3570 level, analysts at Societe Generale report.

See – GBP/USD: Sterling to remain vulnerable while risk-off trading continues – MUFG

Sequence of lower lows and daily close below 200-DMA is bearish

“GBP/USD struggled to reclaim 1.4240 in June forming a double top. A steady decline has brought it towards the 200-DMA and more importantly, it is now threatening a breakdown from the formation. Signals of an extended bounce are still not visible.” 

“So long as last week's high at 1.3910 remains unchallenged, the downward momentum could persist.”

“Next objectives will be at projections of 1.3570 and graphical levels of 1.3510.” 

“Target for the double top is located at 1.3150/1.3130.”