GBP/USD bearish below 1.3100 – UOB

The research team at UOB Group reiterated that GBP/USD has now its focus on the 1.3100 handle in the near term.

Key Quotes

“GBP spiked to a high of 1.3280 last Friday before dropping sharply to a low of 1.3122. The current weakness appears to have scope to extend lower but a sustained move below the major 1.3100 support is not expected”.

“The sharp drop last Friday clearly does bode well for our current bullish view on GBP. The risk of a short-term top has increased considerably but only a break below 1.3100 would indicate that the bullish phase has ended. This appears to be a likely scenario unless GBP can recover above 1.3210 from here”.