GBP/USD keeps the bearish outlook intact – UOB

FX Strategists at UOB Group stay bearish on Cable, adding that a probability of visit to 1.3458 is not high.

Key Quotes

24-hour view: “GBP traded in a relatively wide 1.3499/1.3607 range yesterday before settling largely unchanged. Indicators are mostly neutral which suggests further range trading, likely not moving much out of the range registered yesterday”.

Next 1-3 weeks: “In the latest update on Tuesday (08 May, spot at 1.3560), we left off with the view that the outlook for GBP is “still bearish but odds for further weakness to 1.3458 are not high”. GBP subsequently traded sideways and shorter-term momentum has weakened further. From here, we continue to hold the view that the prospect for further weakness is not high. However, only a break of 1.3630 (‘stop-loss’ level unchanged) would indicate that the bearish phase has ended”.