GBP/USD bearish, points to 1.4090 – UOB

The research team at UOB Group has shifted its outlook to bearish on GBP/USD, seeing at the same time the likeliness of a visit to 1.4090.

Key Quotes

“GBP accelerated lower after taking out the major mid-term 1.4330/35 support (low of 1.4180). The drop is clearly overextended but with no signs of stabilization just yet, another leg lower to 1.4140 would not be surprising”.

“The plunge in GBP took out successive major supports and the outlook has clearly shifted to bearish. While the decline is quickly approaching oversold, further weakness towards 1.4090 appears likely. Stop-loss is at 1.4400 even though 1.4330 is already a strong short-term resistance”.