GBP/USD retracement could reach 1.2345/50 – UOB

In view of FX Strategists at UOB Group, Cable’s potential pullback could re-test the 1.2345/50 area in the near term.

Key Quotes

“The sudden reversal from a high of 1.2570 last Friday and the sharply lower opening early this morning came as a surprise”.

“The rapid swing lower has shifted the pressure to the downside and the current pull-back has scope to extend lower to month-to-date low at 1.2345/50. This is a rather strong support and at this stage, a sustained move below this level is not expected”.

“Overall, GBP is expected to stay under pressure in the next few days unless it can reclaim 1.2540 (1.2500 is already a very strong shorter-term resistance)”.