GBP/USD remains weak, could test 1.3030 – UOB

FX Strategists at UOB Group noted the soft note around Cable and did not rule out a test of the 1.3030/25 band in the near term.

Key Quotes

24-hour view: “The anticipated weakness exceeded the 1.3085 target as GBP hit a low of 1.3070. The subsequent rapid rebound suggests that a short-term bottom is in place. The recovery appears to have scope to extend higher towards 1.3175 but a sustained move above this level is not expected (next resistance is at 1.3205). Support is at 1.3100 ahead of the 1.3070 low”.

Next 1-3 weeks: “There is not much to add as we continue to hold the view that the short-term weakness in GBP could extend lower and test the major

1.3025/30 support. At this stage, the prospect for a clear break below this level is not high but would continue to improve unless GBP

can move and stay above 1.3240”.