GBP/USD no change to the bearish stance – UOB

Analysts at UOB Group have noted the bearish outlook on GBP/USD remains unchanged for the time being.

Key Quotes

“GBP traded in a much narrower range than anticipated but the undertone still appears weak. A move below the overnight low of 1.2345 would increase the downward pressure and could lead to a drop to 1.2300. Only a move back above 1.2400 would indicate that the immediate downward pressure has eased”.

“The rapid decrease in volatility after the ‘flash crash’ on Friday was unexpected. While the bearish phase that started in mid-September is still intact, the 1.1500 level may not be revisited so soon, if at all. That said, confirmation of a shortterm low is only upon a move back above 1.2610”.