GBPUSD top in place? – UOB

The research team at UOB Group assessed the recent price action in GBP/USD and the perspectives for the next 1-3 weeks.

Key Quotes

“GBP rallied strongly last week to touch a high of 1.4663 but the up-move was quickly reversed”.

“The break back below 1.4485 suggests that a short-term top is in place. While the rapid drop does not bode well for GBP in the coming days, the current movement is viewed as part of a corrective pull-back and not the start of a sustained down-move”.

“However, a break of the major 1.4400 support would be a clear indication that GBP is ready to move lower towards the mid-May low of 1.4333 and possibly to the test the rising trend-line at 1.4235”.

“Overall, this pair is expected to be on defensive unless it can reclaim 1.4580 within the next few days”.