GBP/USD scope for further pullback – UOB

In view of FX Strategists at UOB Group, Cable remains poised for further downside in the next weeks.

Key Quotes

“The anticipated weakness in GBP fell short of expectation as it rebounded quickly from a low of 1.2384 (minor support at 1.2380 was unthreatened). Despite the rebound, the undertone for this pair still appears to be negative and from here, another attempt to move towards 1.2380 would not be surprising (next support at 1.2345/50 is likely out of reach for now)”.

“As highlighted yesterday, the sharp pull-back from last Friday’s 1.2570 peak has shifted the immediate pressure to the downside. The short-term weakness is expected to extend lower to the month-to-date low near 1.2345/50. Based on the current momentum, a sustained move below this level appears unlikely. Overall, only a move back above 1.2505 would indicate that the immediate downward pressure has eased”.