GBP/USD now focused on 1.3770 – UOB

FX Strategists at UOB Group noted Cable needs to move and stay below the 1.3370 area in order to reassert the downside.

Key Quotes

24-hour view: “Instead of trading sideways, GBP rose to hit a high of 1.3877 before easing off quickly. The up-move appears to be running ahead of itself and further sustained GBP strength is not expected for now. GBP is more likely to consolidate its gains and trade sideways at these higher levels. Expected range for today; 1.3800/1.3880”.

Next 1-3 weeks: “GBP hit a high of 1.3877 yesterday before closing on a surprisingly strong note. While the ‘stop-loss’ for our bearish view is still intact at 1.3890, the odds for further weakness have diminished. In order to revive the current flagging downward momentum, GBP has to move and stay below 1.3770 within these few days or the risk of a short-term low would increase quickly”.