GBP/USD: Room for extra decline below 1.3300 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group suggested Cable could breach below the 1.3300 level and attempt a test of 1.3260 in the near term.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘downward pressure has eased and this coupled with oversold conditions suggest that the current movement is part of a consolidation phase’ and we expected GBP to ‘trade within a range of 1.3300/1.3365’. GBP subsequently traded between 1.3288 and 1.3357 before closing little changed at 1.3318 (-0.09%). We continue to view the current movement as part of a consolidation and expect GBP to trade between 1.3285 and 1.3360 for today.”

Next 1-3 weeks: “Our update from yesterday (29 Nov, spot at 1.3330) still stands. As highlighted, there is room for GBP to drop to 1.3260. At this stage, a sustained decline below this level is unlikely. On the upside, a break of 1.3390 (no change in ‘strong resistance’ level) would indicate that the weakness in GBP that started early last week has run its course.”

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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