GBP/USD: test of 1.38 unlikely near term – UOB

The research team at UOB Group believes a pullback to the 1.3800 as unlikely in the next 1-3 weeks.

Key Quotes

“As pointed out yesterday, while the outlook for GBP is still viewed as bearish, severely oversold conditions coupled with early signs of momentum slowing down suggests low odds of extension lower to the next support at 1.3800 (partial profit taken at 1.3930)”.

“However, confirmation of a short-term low is only upon a move above the stop-loss at 1.4075”.