GBP/USD: Retest of 1.0550/1.0520 could follow failure to hold 1.0920 – SocGen

In the view of economists at Société Générale, the GBP/USD pair could suffer a substantil drop on a break under the 1.0920 mark.

Break of the resistance zone at 1.1495/1.1550 essential for extension in bounce

“Daily RSI is near the upper end of bearish territory denoting a cross above zone of 1.1495/1.1550 is essential for extension in bounce. Failure can lead to continuation in downtrend.”

“In case recent pivot low at 1.0920 gets violated, there could be a risk of next leg of downtrend towards 1.0550/1.0520 and September levels of 1.0350.”