GBP/USD still targets 1.3000 – UOB

According to analysts at UOB Group, Cable is still expected to grind lower towards the 1.3000 mark in the next weeks.

Key Quotes

“The weakness in GBP is clearly over-extended but after such a strong and impulsive decline, a significant recovery seems unlikely. Overall, GBP is expected to consolidate its sharp drop and trade sideways at these lower levels”.

“As highlighted yesterday, 1.3225/30 is a tenuous support and a break of this level would shift the focus to 1.3000. GBP dropped rapidly to an overnight low of 1.3122 but overextended short-term indicators could slow down the pace of any further decline. Overall, we continue to expect the current GBP weakness to extend to 1.3000”.