GBP/USD bearish below 1.3050 – UOB

The research team at UOB Group sees GBP/USD’s outlook shifting to bearish on a close below 1.3050 in the near term.

Key Quotes

“After the sharp drop yesterday, the immediate pressure is clearly on the downside”.

“However, we are not convinced that the current movement is the start of a sustained down-move in GBP”.

“There is a strong support at 1.3050 and only a daily closing below this level would indicate that a move towards the year-to-date low of 1.2795/00 has started”.

“That said, GBP is expected to remain under pressure in the next several days unless it can move and stay above 1.3220”.