Economists at Société Générale analyze GBP/USD technical outlook.

1.2300 support is crucial to avert deeper pullback

GBP/USD up move faltered near the trend line drawn since 2021 at 1.2670/1.2750 resulting in an initial pullback. This remains a crucial resistance zone.  

The pair has so far defended a rising support line near 1.2300. Currently, a bounce is under way however failure to cross above aforementioned hurdle could mean persistence in down move. 

A break below 1.2300 can lead to a deeper decline towards 1.2130, the 23.6% retracement from last September and the 200-DMA at 1.2000.