GBP/USD keeps the negative stance, attention to 1.15 – UOB

The outlook on GBP/USD remains bearish and a test of the 1.15 area is not ruled out, suggested analysts at UOB Group.

Key Quotes

“The ‘rebound target’ indicated at 1.2355/60 yesterday was not met as GBP dropped sharply from a high of 1.2326. Despite the sharp drop, downward momentum is not very strong and any further decline is expected to encounter solid support at 1.2100. Any rebound from here should find difficulty in moving back above 1.2270 even though the stronger level is at 1.2325/30”.

“There is no change to the view wherein the current GBP weakness could revisit 1.1500. That said, this level seems rather far at this stage and may not be seen so soon. Overall, only a move back above 1.2360 (adjusted from 1.2470) would indicate that the current bearish phase in GBP has ended”.