GBP/USD: Societe Generale bank believes cable could pursue its climb up to 1.6430

Societe Generale notes a potential upside for the GBP/USD towards 1.62 / 1.63 and even 1.6430.

"GBP/USD is extending its recovery phase after having tested the support of a nearly horizontal channel in April. The pair then broke through the upside of a descending channel and also climbed up to last month's summits".

"Currently the pair is testing an upward resistance level at 1.5950. As daily indicators are near a resistance level, a drop is possible. However, this should be temporary. The GBP/USD looks poised to climb higher towards 1.62 / 1.63, the 61.8% retracement since last July, and probably continue towards 1.6430, the target of the projection of the C wave".