GBP/USD further downside not ruled out – UOB

According to FX Strategists at UOB Group, Cable risks extra pullbacks in the near term.

Key Quotes

“While the low of 1.3114 yesterday was within our expected 1.3080/1.3280 consolidation range, the rapid pace of decline coupled with the weak daily closing has shifted the immediate pressure to the downside”.

“Downward momentum is only beginning to pick-up and the current short-term weakness has room to extend lower towards the 1.3025/30 low seen earlier this month. At this stage, the prospect of a sustained break below this level is not high”.

“Overall, GBP is expected to stay under pressure in the coming days unless it can reclaim 1.3230 (minor resistance is at 1.3175)”.