GBP/USD shifted to bearish, eyes 1.3060 – UOB

The research team at UOB Group has shifted its outlook on GBP/USD to bearish from neutral, with the next target now at 1.3060.

Key Quotes

“The unexpected plunge in GBP took out successive strong supports with ease. While clearly over-extended, another leg lower is expected even though a sustained move below 1.3120 seems unlikely, at least for today”.

“The sudden break below 1.3200 (minor trend-line support) coupled with the weak daily closing suggests the start of a sustained down-move in GBP. The immediate target is for a move to the late August low of 1.3060. On the upside, 1.3260 is likely strong enough to hold any short-term rebound but only a break above 1.3340 would indicate that our bearish expectation is wrong”.