GBP/USD: Societe Generale bank confirms head & shoulders figure, indicates targets

Societe Generale has identified a large Shoulder-Head-Shoulder figure on the monthly GBP/USD chart, which was recently confirmed by a break of the neck line.

"The GBP/USD broke below the support area that dates back 35 years and stands at 1.3850/1.35, also confirming a wide head & shoulders figure. It now extends the correction that began in 2007 in an ABC move.

The proposed targets are at 1.2450 and 1.2190, the support level of a downtrend line that dates from 1970. Monthly indicators are approaching a floor suggesting the possibility of a reaction when these targets will be met. The neck line at 1.35/1.3540 should now limit short-term rebounds, while 1.3850 is a key resistance level."