GBP/USD strong support lies at 1.2800 – UOB

According to FX Strategists at UOB Group, Cable faces strong support around the 1.2800 handle in the short term.

Key Quotes

“GBP rebounded to exceed the 1.2910 target (high of 1.2928) before dropping sharply to test the support at 1.2830 (low of 1.2831). With no signs of stabilization, further weakness is expected but at this stage, a move below the major 1.2800 support is not expected. Resistance is at 1.2880 followed by 1.2910. The high near 1.2930 is likely ‘safe’ for today”.

“We continue to hold the view that GBP is in a consolidation phase even though the immediate bias if for a probe lower towards the bottom of the expected 1.2800/1.2975 sideway trading range. At this stage, a sustained move below the major 1.2800 support is not expected. Resistance is at 1.2910 but the key level is closer to 1.2975”.