GBP/USD keeps the bearish bias unchanged – UOB

According to FX Strategists at UOB Group, Cable’s outlook remains entrenched into the bearish side in the near term.

Key Quotes

24-hour view: “The target highlighted at 1.3040/45 yesterday was not met as GBP dropped sharply from a high of 1.3022. While downward momentum is not that strong, a move below last Friday’s 1.2932 low would not be surprising. That said, the next major support at 1.2900 is likely out of reach for now. Resistance is at 1.2990 but the stronger level is closer to 1.3030”.

Next 1-3 weeks: “As indicated late last week, while the bearish phase that started last Monday (07 Aug, spot at 1.3045) is still intact, patchy downward momentum suggests that the odds for further extension to 1.2900 are not high. The short-term rebound last Friday reinforces our view even though GBP has to move clearly above 1.3060 (stop-loss level unchanged) to indicate that the bearish phase has ended. In the meanwhile, another push lower to 1.2900 is not ruled out just yet”.