GBP/USD still room for a test 1.2955 – UOB

Cable stays bearish in the near term and could re-test the mid-1.2900s in the next weeks, according to FX Strategists at UOB  Group.

Key Quotes

24-hour view: “The target indicated at 1.3000 was not met as GBP only managed to touch a low of 1.3014 before recovering. Downward momentum is showing sign of easing and while a test of 1.3000 would not be surprising, a sustained move below this level is not expected (next support is at 1.2980 followed by the major level of 1.2955). Resistance is at 1.3060 followed by 1.3090”.

Next 1-3 weeks: “We turned bearish GBP yesterday and were of the view that while the recent decline is over-extended, there is room for further extension to 1.2955 (strong ‘intervening’ support can be expected near 1.3000). On the upside, only a move back above 1.3165 (stop-loss level unchanged) would indicate that our bearish view is wrong. Those looking to sell may like to wait for a bounce to 1.3090 to enter short with a 1.3165 stop-loss”.