GBP/USD should find strong support near 1.3280 – UOB

Cable’s occasional downside should find decent support in the 1.3280 region, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “While GBP extended its gain as expected, the high of 1.3337 did not reach the ‘target’ indicated at 1.3355/60 yesterday. Upward momentum has eased considerably and the immediate bias is tilted to the downside. That said, any weakness is expected to encounter solid support at 1.3280 followed another strong level at 1.3260. Resistance is at 1.3335 ahead of 1.3360”.

Next 1-3 weeks: “GBP eased off quickly without testing the major 1.3350 resistance. While upward pressure has eased somewhat, another attempt to move clearly above 1.3350 is not ruled out even though the odds for such a move are not high at this stage. On the downside, a move back below the key short-term support at 1.3260 is enough to indicate an interim top is in place”.