GBP/USD faces strong resistance in the 1.2150 area – UOB

Cable remains under heavy pressure, with the next support emerging around 1.1400, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP to “take a breather” was clearly wrong as it nose-dived to a low of 1.1452. Despite the quick bounce from the low, strong and impulsive momentum suggests further GBP weakness would not be surprising. From here, barring a move above 1.1820, GBP could move to 1.1400.”

Next 1-3 week: “We highlighted yesterday the ‘2019 low near 1.1960 is beckoning to GBP’. The call was much stronger than expected as GBP staged a ‘flash-crash’ within a crash as it dived vertically and hit a low of 1.1452. We are going to be brief and point out that since the 1.3200 peak last Monday (09 Mar), GBP has posted seven consecutive days of ‘lower low’, ‘lower high’ and obviously ‘lower close’. The way the price action is playing out, the seven days could turn into several more. Support is at 1.1400, below that there is kind of a ‘vacuum’ until the round number level of 1.1000. The ‘strong resistance’ level has moved lower to 1.2150 from yesterday’s level of 1.2350.”