Uptrend to persist towards 1.2550/1.2600 on a move above 1.2450 – SocGen

GBP/USD has retested the peak of 1.2450 resulting in a brief pause. A break past this level is set to resume the race higher towards 1.2550/1.2600 and 1.2750, economists at Société Générale report.

50DMA at 1.2160/1.2130 is crucial support

“Daily MACD is at a much lower level as compared to previous high denoting receding upward momentum. However, signals of an extended pullback are not yet visible.”

“50DMA at 1.2160/1.2130 is an important support. Only if a break below this materializes, there could be a risk of a deeper correction.”

“Ongoing pause could be short-lived. Once the pair reclaims 1.2450, the uptrend is likely to persist towards 1.2550/1.2600 and 1.2750, the 61.8% retracement from 2021.”