GBP/USD Support Zone in Focus as Analysts Eye Brief Bounce

The British Pound is trading near its key support zone against the US Dollar, according to Societe Generale.

GBP/USD has retreated toward its 200-day moving average and the August trough at 1.3440-1.3420, which could act as a potential support zone, analysts say.

A brief bounce is likely, but a move above the recent pivot high at 1.3565 will be crucial to confirm a broader upward move, Societe Generale notes.

If the pair fails to hold above 1.3420, the decline may deepen, with potential objectives at 1.3360 and 1.3270, according to the bank's analysis.