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”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.