GBP/USD: Outlook keeps pointing to further losses – UOB

Pablo Piovano FXStreet

Extra decline remains on the cards for GBP/USD in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the price actions appear to be consolidative’ and we expected GBP to consolidate in a range of 1.2320/1.2390. In line with our expectations, GBP consolidated, albeit in a narrower range than expected (1.2337/1.2371), The quiet price actions offer no fresh clues and we continue to expect GBP to consolidate, likely between 1.2325 and 1.2385.”

Next 1-3 weeks: “Our update from last Friday (26 May, spot at 1.2320) still stands. As highlighted, the 2-week weakness in GBP is intact but it remains to be seen if 1.2175 will come into view this time around. On a shorter-term note, it is worth noting that both 1.2300 and 1.2250 are strong support levels. On the upside, a breach of 1.2415 (no change in ‘strong resistance’ level) would suggest the GBP weakness has stabilized.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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