GBP/USD rebounds after testing June low – Société Générale

GBP/USD is attempting a rebound after finding support near its June low at 1.3360, but technical signals point to waning bullish momentum. The upside may remain limited unless the pair overcomes key resistance around 1.3630, Société Générale's FX analysts note.

Upside capped near 1.3630 resistance

"GBP/USD has undergone a steady pullback after facing strong resistance near 1.3785 earlier this month. The pair has slipped below the 50-DMA and breached an ascending trendline established since January, signalling weakening upward momentum."

"The pair has found tentative support at the June low of 1.3360. A bounce is under way however, the upside may be capped near 1.3630, the 61.8% retracement of the recent pullback. A break below 1.3360 could lead to extension in decline."