GBP/USD room for a test of 1.3025/30 – UOB

According to FX Strategists at UOB Group, Cable could now slip back to the 1.3025/30 band in the next weeks.

Key Quotes

24-hour view: “GBP reversed most of its previous day’s gain and extended its decline after NY close. The down-move appears incomplete and further weakness towards last week’s low near 1.3085 seems likely. The next support at 1.3030 is likely out of reach for now. On the upside, only a move back above 1.3190 would indicate that the current weakness has stabilized (minor resistance is at 1.3160)”.

Next 1-3 weeks: “GBP reversed most of the gains made on Wednesday and took out the strong 1.3170 support… We expected the short-term weakness to extend lower and test the major 1.3025/30 support. At this stage, the prospect for a clear break below this level is not high but it would continue to improve unless GBP can move and stay above 1.3240. On a shorter-term note, 1.3190 is already a strong resistance”.