GBP/USD negative stance mitigated on a close above 1.2470 – UOB

The research team at UOB Group suggested the bearish view on GBP/USD could be alleviated on a close above 1.2470.

Key Quotes

“GBP closed at 1.2123 yesterday but surged to current level during Sydney hours. The strong rebound on the back of PM May’s comments that UK parliament should be allowed to vote on her plan on Brexit appears incomplete and further extension towards 1.2355/60 seems likely (key resistance is nearer to 1.2470)”.

“There is no change to the view wherein the current GBP weakness could revisit 1.1500. That said, this level seems rather far at this stage and may not be seen so soon. Overall, only a move back above 1.2470 (adjusted from 1.2610) would indicate that the current bearish phase in GBP has ended”.