The research team at UOB Group has argued that the corrective upside in GBP/USD could be over.
Key Quotes
“As indicated yesterday, the corrective rebound from the low of 1.3836 earlier this month has likely topped out at 1.4437”.
“The unexpected sharp drop yesterday easily took out the strong 1.5200 support suggesting that the current weakness is the start of a fresh bearish phase in GBP”.
“Looking back, the recent price action is very similar to the 1.4080 to 1.4672 recovery earlier this year which upon completion led to the sharp drop to 1.3836”.
“The immediate target is at 1.4000 which is a solid support and may not break so easily. The resistance at 1.4240 is likely strong enough to contain any short-term rebound but only a move back above 1.4305 would indicate that our view is wrong”.
(Market News Provided by FXstreet)