GBP/USD bearish below 1.2300 – UOB

Cable’s outlook could shift to bearish on a daily close below 1.2300, suggested strategists at UOB Group.

Key Quotes

“As highlighted last Friday, while the shorter term undertone has turned negative, any decline in GBP is expected to encounter solid support at 1.2300. GBP touched a low of 1.2302 during NY session but has recovered somewhat”.

“That said, the undertone is still weak and a daily closing below 1.2300 would indicate that the current neutral outlook has shifted to bearish (with an immediate target of 1.2200)”.

“Overall, this pair is expected to stay under pressure unless it can move back above 1.2430/35 within the next 1 to 2 days”.

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