GBP/USD still targets 1.2700 – UOB

GBP/USD could still grind lower towards the 1.2700 area, suggested the research team at UOB Group.

Key Quotes

“GBP traded in a relatively narrow range last Friday (between 1.2881 and 1.3022). Indicators are mostly neutral which suggests further sideway trading for today”.

“While downward momentum continues show signs of weakening, only a move above 1.3150 would indicate that a short-term low is in place. Until then, another leg lower to 1.2700 cannot be ruled out just yet even though the odds for such a move would continue to diminish with further consolidation above the recent low of 1.2795/00”.