GBP/USD weakness over-extended? – UOB

The research team at UOB Group sees the ongoing decline in GBP/USD as overextended.

Key Quotes

“GBP plunged to a low of 1.2798 but the subsequent sharp and rapid recovery indicates that the strong downward pressure has eased. However, it is too early to expect a significant rebound after such a sharp drop and it is more likely that this pair would trade sideways at these lower levels for now”.

“The 1.3000 target that was first indicated last Monday was finally met as GBP plunged to a low of 1.2798 yesterday. The outlook is still bearish but the current weakness is overextended and those who are shorts should look to book partial profit on any further decline to 1.2700”.