GBP/USD in oversold levels, targets 1.2930 – UOB

In view of the research team at UOB Group, GBP/USD remains on the bearish camp and targets the 1.2930 area.

Key Quotes

“While the sharp drop in GBP appears to be running ahead of itself, downward momentum remains strong and further extension to 1.2950 would not be surprising”.

“The 1.3060 target that was first highlighted last Wednesday (14/9/16) was exceeded as GBP plunged to a low of 1.2996 on Friday”.

“The down-move is clearly oversold but impulsive downward momentum suggests that the current decline could extend further to 1.2930. Strong resistance is at 1.3100 but only a break of the stop-loss at 1.3170 (adjusted from 1.3340) would indicate that the bearish phase has ended”.