GBP/USD targets 1.2850 near term – UOB

The research team at UOB Group still expects GBP/USD to slip towards the mid-1.2800s in the next 1-3 weeks.

Key Quotes

“Instead of trading sideways as expected, GBP dropped to a low of 1.2936. While further weakness seems likely, downward momentum is patchy at best and any decline from here is expected to be slow and grinding. Overall, as long as 1.3005 is intact, the current down-move in GBP is expected to extend lower to the next support at 1.2890/95”.

“The slow drift lower in GBP is in line with our bearish expectation. The target is still at 1.2850 but as highlighted yesterday, the internal momentum is not strong and this level is unlikely to yield so easily. Those who are short may likely to take partial profit at this level. In the meanwhile, the stop-loss for the bearish is view is adjusted lower to 1.3075 from 1.3130 previously”.