GBP/USD scope for a test of 1.2285 – UOB

FX Strategists at UOB Group still believe that Cable could still test the 1.2280 area in the next 1-3 weeks.

Key Quotes

“Expectation for GBP to extend its decline was wrong as it rebounded quickly from a low of 1.2367. The recovery appears to be running ahead of itself and further sustained up-move is not expected. This pair is more likely to trade sideways for now, likely within a 1.2390/1.2460 range”.

“The strong rebound from a low of 1.2367 yesterday came as a surprise. The sharp drop from last Friday is losing momentum but it is too early to expect a sustained recovery. As long as 1.2460 is intact, another push lower towards 1.2285 still seems likely even though the odds for such a move have diminished”.