GBP/USD is showing early signs of recovery, forming a higher bottom at 1.3030 and breaking the down channel, with upside potential towards 1.3300 if support holds, foreign exchange market analysts at Société Générale note.
GBP/USD breaks the upper limit of the descending channel
“GBP/USD has made a higher low near 1.3030 compared to the level it reached in the first week of November near 1.3000. It has crossed the upper limit of the descending channel that included the recent decline.”
“A short-term bullish move towards the confluence of the 50-DMA and 200-DMA near 1.3300 cannot be ruled out. If the pair overcomes this hurdle, a larger upward move may be achieved. Defending 1.3030 will be crucial to continue the bounce.”
