GBP/USD faces consolidation ahead of a leg lower – UOB

In opinion of analysts at UOB Group, GBP/USD could attempt a consolidative pattern ahead of further downside in the short term.

Key Quotes

“GBP dropped sharply from a high of 1.3496 but the subsequent strong rebound from the overnight low of 1.3207 has resulted in a mixed outlook”.

“We view the current movement as a short-term consolidation phase that is expected to lead to an attempt lower to take out the post-Brexit low of 1.3120/25 (for a move to the major 1.3000 level)”.

“However, it has been a week since Brexit and the lack of follow through has dented the downward momentum somewhat but confirmation of an interim low is only upon a break above 1.3600 (adjusted lower from 1.3785)”.