GBP/USD still bearish, potential test of 1.20 – UOB

Cable keeps its bearish note today, with the door still open for a potential visit to the 1.20 area, according to FX Strategists at UOB Group.

Key Quotes

“GBP broke below 1.2100 to hit a low of 1.2038 before surging higher to take out the strong 1.2250 resistance (high of 1.2273). The up-move appears to be running ahead of itself and while a move to retest 1.2270/75 would not be surprising, the next major level at 1.2300 is likely to hold”.

“GBP broke below the strong 1.2085/90 support (low of 1.2038) but the down-move was quickly reversed. The sharp bounce from the low has dented the recent downward momentum but as long as 1.2290 is intact, another leg lower towards 1.2000 cannot be ruled out just yet. That said, based on the current lackluster momentum, those who are short should look to book partial profit near 1.2005/10”.