GBP/USD short term low in place? – UOB

GBP/USD could have carved a short-term low and allows the way for a consolidative theme in the next weeks, in opinion of the research team  at UOB Group.

Key Quotes

“GBP is currently pressuring the major 1.3060 resistance (high of 1.3059 during early Sydney hours) and a break above this level could lead to extension towards 1.3095 but last week’s peak at 1.3120 is likely out of reach for now”.

“The bearish phase that started about two weeks ago appears to be close to completion. Unless there is a sustained move back below 1.2980 by end of the day, a break above the current 1.3060 stop-loss would not be surprising. A move above 1.3060 would indicate that GBP has moved into a neutral consolidation phase, likely within a 1.2930/1.3160 range”.