GBP/USD bearish near-term – UOB

FX Strategists at UOB Group remain bearish on Cable, expecting it to navigate within 1.2690-1.2795 in the near term.

Key Quotes

“While the target indicated at 1.2705 yesterday was exceeded as GBP dropped to a low of 1.2691, the subsequent swift and strong bounce that hit a high of 1.2795 was unexpected. The choppy swing has resulted in a mixed outlook and this pair is expected to trade sideways from here, likely not moving much out the 1.2691/1.2795 range seen yesterday”.

“GBP dipped to a low of 1.2691 yesterday but rebounded quickly to end the day largely unchanged. Downward momentum is waning but the bearish phase that started on Tuesday, 13 Jun is still intact. That said, GBP has to stage the ‘next leg’ lower soon or downward momentum would continue to deteriorate. In the meanwhile, stop-loss remains unchanged at 1.2820 and the immediate target is still at 1.2560”.