GBP/USD downside coming to an end - UOB Group

By FXstreet.com | July 28, 2014 AAA

FXStreet (Guatemala) - The Market Strategy Team at UOB Group explained that while the immediate outlook for GBP is still considered as bearish, we are mindful that the current weakness could be close to an end.



Key Quotes



"In our last Chart of the Day on 18/7/14 (Spot: 1.7095), we held the view that the pullback in GBP will extend towards 1.6995/1.7010. Our target was exceeded with a low of 1.6967 yesterday."



"As highlighted before, we view the drop from the recent high of 1.7192 as corrective and do not expect a sustained mid-term GBP decline. While further down-move is not ruled out, indicators are already approaching oversold and the next support zone at 1.6920/50 will likely be difficult to crack."



"In other words, while the immediate outlook for GBP is still considered as bearish, we are mindful that the current weakness could be close to an end. A break above the key resistant at 1.7095 would indicate that a low is in place and a move towards the recent high of 1.7192 has started."



comments powered by Disqus
Related Forex Analysis
  1. Asian recap: Aussie and Yen run the show, majors playing second fiddle
    Forex News

    Asian recap: Aussie and Yen run the show, majors playing second fiddle

  2. Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms
    Forex News

    Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms

  3. GBP/USD at Risk for Fresh Monthly Lows on Slowing U.K. GDP
    Forex News

    GBP/USD at Risk for Fresh Monthly Lows on Slowing U.K. GDP

  4. British Pound Could Close Out Week with a Bang on UK GDP
    Forex News

    British Pound Could Close Out Week with a Bang on UK GDP

  5. Video: EURUSD, USDJPY Breakouts Unlikely to Form Trends
    Forex News

    Video: EURUSD, USDJPY Breakouts Unlikely to Form Trends

Trading Center