GBP/USD still risks a drop to 1.3370 – UOB

In opinion of FX Strategists at UOB Group, Cable still remains under pressure and does not rule out further decline in the next weeks.

Key Quotes

24-hour view: “Our expectations for ‘further GBP weakness’ did not materialize as it rose to 1.3517 before dropping back down. The current movement is viewed as part of a consolidation phase and GBP is likely to trade sideways for today, expected to be between 1.3430 and 1.3530.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (30 Sep, spot at 1.3435). As highlighted, GBP is still weak and a break of 1.3370 would shift the focus to 1.3300. The current negative outlook is deemed intact as long as GBP does not move above 1.3570 (no change in ‘strong resistance’ level from yesterday).”