GBP/USD: The SocGen bank expects cross to fall to 1.42 or lower

"The pair broke the lower limit of a channel formed over several years and continues the downward trend that began in June. The pair seems doomed to fall to 1.42, the low of 2010.

The monthly MACD remains in negative territory, which calls for a continuation of the downtrend.

A support level exists at 1.4360 but it will probably only be intermediate support. The movement should continue towards 1.42 and potentially down to 1.36/1.35 when one observes long-term charts.

If one turns to the daily chart, the pair has confirmed a shoulder head shoulder configuration and completed the implicit objective at 1.4360.

1.53 is now a key resistance level that will be difficult to regain." says SocGen.