GBP/USD: Failure to hold 1.1410 can extend the dip towards 1.1270 – SocGen

Cable recovers from 1.1410 low. A break below here would clear the way for a substantial drop towards 1.1270, economists at Société Générale report.

Bounce expected

“GBP/USD has revisited 2020 low near 1.1410. An initial bounce is not ruled out however July trough of 1.1760/1.1840 is likely to cap.”

“Technically, support for cable is still at 2020 low of 1.1410, break can extend the decline towards next projections at 1.1270.”