GBP/USD downside seen limited – UOB Group

The research team at UOB Group sees a test of the 1.3800 handle as unlikely in the near term.

Key Quotes

“GBP eked out a fresh low of 1.3854 last Friday and as pointed out recently, severely oversold conditions coupled with slowing downward momentum suggest low of odds of extension lower to 1.3800 (partial profit taken at 1.3930)”.

“However, confirmation of a short-term low is only upon a move back above 1.4040 (adjusted lower from 1.4075)”.