GBP/USD: The 1.25 level attracts after being rejected at 1.2650 – OCBC

GBP/USD is posting small losses on Tuesday as the cable has retreated from the 1.2650 level. Terence Wu, an FX strategists at OCBC Bank, notes that a no Brexit agreement is going to weigh on the sterling and the GBP/USD pair should fall to the 1.25 level. 

Key quotes

“The GBP/USD appeared to run out of steam after another to breach 1.2650 was beaten back.” 

“At this juncture, the focus for the UK appears to be preparing for no trade agreement post-Brexit, putting into question the recent optimism surrounding the GBP/USD.” 

“For now, watch for the 1.2500 level on the downside, which may attract if the broad USD finds its footing.”