GBP/USD still targets 1.2100 – UOB

FX Strategists at UOB Group still sees Cable heading towards the 1.2100 area in the next weeks.

Key Quotes

“GBP traded sideways as expected, albeit at a lower and narrower range than anticipated (between 1.2134 and 1.2195). While the undertone is on the weak side, any decline from here is expected to struggle to move below the major 1.2100 support”.

“We were of the view that GBP would grind lower towards 1.2150 followed by 1.2100. The overnight low has been 1.2139 and while there are some early and tentative signs that GBP is trying to form a base, only a move back above the trailing stop-loss at 1.2250 (adjusted from 1.2310) would indicate that a short-term low is in place. Until then, GBP is expected to grind lower towards the next support at 1.2100”.