GBP/USD bearish, could see a test of 1.2930 – UOB

GBP/USD remains in oversold territory and could visit the 1.2930 area in the next 1-3 weeks.

Key Quotes

“The anticipated weakness in GBP exceeded our expectation by easily taking out the strong 1.2995/00 support (overnight low of 1.2947). Despite being oversold, the current decline appears to have scope to extend further but 1.2930 is another strong support and this level may not yield so easily. On the upside, any rebound is expected to face stiff resistance at 1.3030 followed by the stronger level near 1.3080”.

“GBP extended its decline to touch a low of 1.2947 yesterday. As highlighted in recent updates, while the recent drop is clearly oversold, the down-move appears to have scope to extend lower to 1.2930. This is a strong support level and those who are short may likely to take partial profit here. Stop-loss is adjusted lower to 1.3120 from 1.3170”.