GBP/USD sticks to the bearish perspective – UOB

FX Strategists at UOB Group remain bearish on Cable for the time being, adding that the pair needs to clear 1.2910 in order to signal an end of the bearish phase.

Key Quotes

“GBP rebounded and hit a high of 1.2888 yesterday, holding below the stop-loss for our bearish view at 1.2910”.

“The subsequent sharp drop post-NY close is encouraging but the decline lacks momentum and the suggested partial profit taking level at 1.2755/60 could be out of reach within these 1 to 2 days”.

“In the event of a break of 1.2755/60, the next level to focus on is at 1.2705, the high back in February. On the upside, a break above 1.2910 (level unchanged) would indicate that the bearish phase that started last Friday 26 May (spot at 1.2900) has ended”.