GBP/USD points to further decline – UOB

According to the research team at UOB Group, the pair could face further downside in the next 1-3 weeks.

Key Quotes

“We have been neutral on GBP since 23 March and the recent choppy movement reinforces our view”.

“The outlook remains unclear but short-term momentum is improving and the risk appears to be tilted to the downside”.

“That said, 1.4050 is a major support and GBP has to move clearly below this level before a sustained down-move can be expected”.

“Resistance is at 1.4240 followed by 1.4370. The late March high near 1.4450 is unlikely to come into play, at least not for the next few days”.