GBP/USD now looks to 1.2980 – UOB

The research team at UOB Group believes Cable could re-test the area of 1.2980 in the next 1-3 weeks.

Key Quotes

“While we were of the view that the short-term rally was running ahead of itself, the rapid and sharp sell-off to a low of 1.3023 last Friday was unexpected. From here, the current GBP weakness appears to have scope to extend lower but the 1.3000 support is unlikely to come under serious threat”.

“GBP dropped sharply after making a ‘fresh high’ of 1.3186 last Friday. While the outlook for this pair is still viewed as neutral, the weak daily closing indicates that a short-term top is in place and the current weakness could extend lower to 1.2940. At this stage, a sustained move below this level is not expected. Overall, GBP is expected to remain under pressure in the next several days unless it can move and stay above the 1.3186 high”.