GBP/USD oversold, potential test of 1.2930 – UOB

GBP/USD remains under pressure in oversold levels and still targets the 1.2930 area, suggested analysts at UOB Group.

Key Quotes

“GBP rebounded quickly but the recovery was checked by the strong 1.3100 resistance (overnight high of 1.3092). The undertone still appears to be weak but based on the current momentum, any decline is not expected to move significantly below last Friday’s low near 1.2996”.

“The 1.3060 target that was first highlighted last Wednesday (14/9/16) was exceeded as GBP plunged to a low of 1.2996 on Friday. The down-move is clearly oversold but impulsive downward momentum suggests that the current decline could extend further to 1.2930. Strong resistance is at 1.3100 but only a break of the stop-loss at 1.3170 (adjusted from 1.3340) would indicate that the bearish phase has ended”.