GBP/USD bearish, could test 1.2865 – UOB

The research team at UOB Group has noted the bearish stance on GBP/USD and believes it could test the 1.2865 area in the next 103 weeks.

Key Quotes

“The unexpected sharp decline in GBP took out the major 1.2930 support (low of 1.2915). The down-move appears to be running ahead of itself and a sustained move below 1.2915 appears unlikely. However, only a move back above 1.3020 would indicate that the immediate downward pressure has eased”.

“GBP staged a rapid and abrupt turnaround last Friday and dropped below the revised target of 1.2930 (low of 1.2915). While the outlook is still viewed as bearish, any further extension is likely limited to the next major support at 1.2865 (low in August). That said, the current bearish phase is intact until the stop-loss at 1.3060 is taken out (adjusted from 1.3120)”.