GBP/USD downside limited? – UOB

FX Strategists at UOB Group noted Cable’s downside seems to have lost some steam for the time being.

Key Quotes

“The 1.2200 target that was first indicated last Thursday was finally reached yesterday with overnight low of 1.2170”.

“While most indicators still point to a lower GBP, downward momentum is not as impulsive as preferred and it is likely that we would see slow downward grind from here”.

“The next level to aim for is at 1.2150 followed by 1.2100. Stop-loss is adjusted lower to 1.2310 from 1.2340 even though on a shorter-term note, 1.2270 is already a strong resistance”.