GBP/USD pulls back after inverse head-and-shoulders breakout – Société Générale

GBP/USD has retreated to its breakout point after surging toward 1.3725, but with momentum gauges still supportive, holding above 1.3470 would keep the broader uptrend intact, Société Générale's FX analysts note.

Pound tests support as uptrend momentum holds

"GBP/USD broke above the neckline of an inverse head and shoulders pattern earlier this week, advancing toward 1.3725 before pulling back to the breakout level. The daily MACD remains in positive territory, indicating sustained upward momentum."

"In the near term, key support lies at the 50-day moving average and last week’s low around 1.3470. Holding above this support could pave the way for a continued uptrend."