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Societe Generale analysts, led by Kenneth Broux, report that GBP/USD has broken below its ascending trendline from April 2025 and is extending declines toward the March low. The technical breakdown suggests a bearish outlook as the pair tests critical support levels. This development could trigger further selling pressure if the trendline breach is confirmed by closing below key psychological and Fibonacci levels. Traders are advised to monitor the 1.2600 level as a potential next target for the pair.
The GBP/USD trendline break is significant for forex markets as it reflects deteriorating technical momentum for the British Pound. With the UK's economic data showing mixed signals and the Bank of England's cautious stance on rate hikes, the breakdown could accelerate capital outflows from GBP. This is particularly relevant for Gulf investors with exposure to GBP-based assets or those hedging currency risk in cross-border trade.
Looking ahead, the 1.2600 level will be a critical test for GBP/USD. A sustained break below this level could open the door to 1.2400, while a rebound above the trendline might signal a temporary pause in the downtrend. Traders should also watch for central bank interventions or unexpected economic data that could reverse the current bearish momentum.
