GBP/USD further downside unlikely – UOB

The current pullback in GBP/USD seems over-extended in the near term, according to the research team at UOB Group.

Key Quotes

“GBP moved above the 1.3020 resistance (high of 1.3048) before easing off quickly. Downward momentum is picking up again but at this stage, any decline is expected to encounter solid support at 1.2795/00 (Wednesday’s low) followed by another equally strong level near 1.2740”.

“As highlighted yesterday, the current weakness is overextended and we are seeing further signs that downward momentum is slowing”.