GBP/USD further losses await below 1.2960 – UOB

According to the research team at UOB Group, GBP/USD risks deeper pullbacks on a breakdown of the 1.2960 area.

Key Quotes

“GBP dipped briefly below the strong 1.3065 support (low of 1.3057) before rebounding strongly to an overnight high of 1.3177. The subsequent whippy price action has resulted in a mixed outlook and further choppy range trading seems likely from here”.

“We shifted to a neutral stance about 2 weeks ago and since then GBP has been trading choppily within a broad range. However, downward momentum has improved somewhat but only a clear break below the major 1.2960 support would indicate the start of a sustained down-move”.