GBP/USD still seen testing 1.2200 – UOB

FX Strategists at UOB Group believe Cable could still attempt to visit the 1.2200 handle in the near term.

Key Quotes

“GBP hit a fresh low of 1.2215 before staging a strong rebound to close at the high of 1.2300. The recovery appears incomplete and extension towards 1.2340 seems likely (next resistance at 1.2385 is likely out of reach). Support is at 1.2255 followed by the 1.2215 low which is acting as a very solid support now”.

“GBP hit a low of 1.2215 last Friday, just above the bearish target of 1.2200. While the subsequent sharp recovery has dented the downward momentum, only a move back above 1.2385 would indicate that the bearish phase has ended. Until then, another leg lower towards 1.2200 is not ruled out just yet”.