GBP/USD sticks to the bearish outlook – UOB

Pablo Piovano FXStreet

Cable’s stance remains bearish and faces the probability that a short-term low is in place, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected a higher GBP yesterday and were of the view “further up-move towards 1.3570 would not be surprising”. GBP subsequently touched a high of 1.3569 before staging a surprisingly rapid decline to a low of 1.3473. The volatile price action has resulted in a mixed outlook and further choppy trading within a broad range seems likely. Expected range for today; 1.3470/1.3560”.

Next 1-3 weeks: “After edging below the January’s low of 1.3458 on Tuesday (15 May), GBP has been unable to make much headway on the downside. The lack of a follow-through and the subsequent sideway trading has resulted in a rapid loss in downward momentum. In order to revive the flagging momentum, GBP has to move and stay below 1.3470 within these 1 to 2 days or further consolidation around these levels would quickly increase the odds for a short-term low. Conversely, a move above the ‘stop-loss’ at 1.3600 would indicate that the current bearish phase has ended”.

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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