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.
"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."