GBP/USD: Downside momentum continues to build – UOB

The downside momentum is expected to pick up pace if GBP/USD breaks below the 1.2940 level in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser.

Key Quotes

24-hour view: “Our expectations for GBP to ‘to break 1.2975’ did not materialize as it traded between 1.2981 and 1.3040 before ending the day little changed at 1.3001 (-0.08%). Downward pressure appears to have eased and GBP is likely to consolidate for today, expected to be within a range of 1.2985/1.3050.”

Next 1-3 weeks: “There is no change in our view from yesterday (19 Apr, spot at 1.3005). As highlighted, downward momentum is beginning to build but GBP has to break 1.2940 before a sustained decline is likely. On the upside, a breach of 1.3075 (no change in ‘strong resistance’ level from yesterday) would indicate that GBP is not ready to head lower (and could trade sideways for a period of time).”