GBP/USD focused on 1.4090 – UOB

The research team at UOB Group sees GBP/USD still targeting the 1.4090 area in the short term.

Key Quotes

“Instead of extending its recent weakness, GBP rebounded to an overnight high of 1.4220. Downward pressure has clearly eased and the current movement is viewed as part of a consolidation phase”.

“While shorter-term momentum has eased, it is too early to expect to a low in GBP. Only a break above the 1.4330 stoploss would indicate that the 1.4091 low seen two days ago is the extent of the bearish phase (our immediate target is at 1.4090)”.

“In the meanwhile, GBP is expected to trade sideways for a few days before staging another attempt to move clearly below 1.4090”.