Societe Generale FX Technical Strategy Research notes that EUR/USD has been undergoing a recovery, probing a multi-month resistance line at 1.08/1.0860 and is successfully defending the bullish channel support at 1.0560.
"It should now retest 1.08/1.0860. A break above will mean a sustainable rebound towards 1.1130 and even towards last November’s high of 1.13. 1.0940/85 will be an interim projection," SocGen argues.
On GBP/USD, SocGen notes that it has breached above the upper band of the consolidation and in has also confirmed a near double bottom pattern on a daily closing basis.
"This has unleashed an initial rebound that is set to reach 1.30/1.3040 and 1.3135, the upper band of the multi-month up channel," SocGen projects.
EUR/USD is trading circa 1.07 and GBP/USD is trading circa 1.28 as of writing.
Source: Societe Generale Cross Asset ResearchOriginal Article
