GBP/USD to see a larger bounce on a break above 1.38 – SocGen

Sterling has capitalised on dollar weakness and GBP/USD is set to see first gains in three weeks. A move beyond 1.3800 could result in a larger bounce, according to economists at Société Générale.

July low at 1.3570 is a key support

“GBP/USD is still struggling to reclaim the confluence of 200-DMA and daily Ichimoku cloud near 1.3800. Reclaiming this resistance is essential for a meaningful rebound.”

“July low at 1.3570 is an important support.”