GBP/USD solid support lies at 1.2560 – UOB

FX Strategists at UOB Group stay bearish on Cable, adding that strong support is located around the 1.2560 region.

Key Quotes

“The quick ‘retest’ of last week’s 1.2636 low comes as a surprise (overnight low of 1.2640)”.

“We were of the view that 1.2636 would hold for a few days but the rapid decline yesterday suggests that a move below this level is likely”.

“That said, any further weakness is expected to face solid support at 1.2560, followed by 1.2515. To put it another way, the outlook for this pair has shifted to bearish with an immediate target at 1.2560 followed by 1.2515”.

“In view of oversold short-term conditions, those looking to sell may like to wait for ‘better selling levels’ near 1.2735/40 with stop-loss at 1.2820”.