GBP/USD further downside likely – UOB

GBP/USD remains poised for further weakness in the near term, suggested FX Strategists at UOB Group.

Key Quotes

“We turned neutral last Friday after when the bearish stop loss was taken out at 1.2290”.

“The gap lower this morning was clearly unexpected and the immediate risk has shifted to the downside again”.

“However, it is uncertain whether the current GBP weakness can be sustained even though on a shorter-term basis, there is room for extension lower towards 1.1900”.

“Last Friday’s low near 1.2120/25 is acting as a strong resistance but only a move above 1.2200 would indicate that the immediate downward pressure has eased”.