GBP/USD to retest 200-DMA around 1.3740 on strong UK data releases – SocGen

GBP/USD is seen an initial pullback after challenging the 200-day moving average (DMA) around 1.3740. According to economists at Société Générale, cable may find more support from UK data this week and challenge the 200-DMA again. 

Critical support seen at 1.3500/1.3460

“Cable bulls may have another attempt at the 200-DMA (1.3737) this week if stocks don’t languish and labour market and CPI this week cement case for 25bp BoE hike in February.” 

“Daily Ichimoku cloud at 1.3500/1.3460 should be an important support near-term.”

“Next potential hurdle is at October high of 1.3840.”