GBP/USD rebound only corrective – UOB

The research team at UOB Group sees the current rebound in GBP/USD as corrective near term.

Key Quotes

“The anticipated GBP recovery exceeded the 1.3450 resistance to touch an overnight high 1.3534. From here, a retest of the high would not be surprising but 1.3600 is expected to cap for a move lower to 1.3400”.

“The short-term GBP strength is viewed as a corrective rebound and it is too early to expect a sustained recovery”.

“Trading is expected to remain volatile but at this stage, we do not see GBP moving back above the stop-loss for our bearish view at 1.3785. This level is expected to move lower if the current volatility abates further”.

“Target remains unchanged at 1.3000 even though Monday’s low of 1.3120/25 is acting as a strong intermediate support”.