GBP/USD bearish near term – UOB

FX Strategists at UOB Group keep the bearish stance on Cable in the near term.

Key Quotes

“The target indicated at 1.2755/60 was not met as GBP rebounded from a low of 1.2795 (but stayed below the strong 1.2875 resistance). The quick drop from the overnight high of 1.2850 suggests that downward pressure is increasing again but 1.2755/60 could be just out of reach for now (last Friday’s low at 1.2775 is already a strong support)”.

“The rebound from the 1.2775 low last Friday is viewed as a correction and the bearish phase that started last Friday, 26 May (spot at 1.2900) is still intact. That said, the sharp decline appears to be running ahead of itself and those who are short should look to take partial profit near 1.2755/60 (next support is at the February’s peak near 1.2705). Stop loss remains unchanged at 1.2910 for now even though 1.2875 is likely strong enough to cap any short-term recovery”.