GBP/USD: Door open for a move to 1.3550 – UOB

In opinion of FX Strategists at UOB Group, GBP/USD could slip back to the 1.3550 level in the next weeks.

Key Quotes

24-hour view: “GBP plummeted to 1.3573 yesterday before rebounding to close at 1.3628 (-0.33%). Downward momentum has slowed somewhat and this combined with oversold conditions suggests that GBP is unlikely to weaken further. For today, GBP is more likely to consolidate and trade between 1.3585 and 1.3670.”

Next 1-3 weeks: “GBP plummeted to a 5-1/2 month low of 1.3573 yesterday before rebounding quickly. While the sharp and rapid decline over the past few days appears to be running ahead of itself, there is room for GBP to drop below 1.3550. In view of the oversold conditions, it is left to be seen if it can maintain a foothold below this level (next support is at 1.3500). All in, the current downward pressure in GBP is deemed intact as long as it does not move above 1.3730.”