GBP/USD bearish, now targets 1.3660 – UOB

FX Strategists at UOB Group suggested there is scope for Cable to test the 1.3660 area in the near term.

Key Quotes

24-hour view: “The ‘target’ indicated at 1.3700 yesterday was not met as GBP rebounded from a low of 1.3712. The 1.3712 low is likely a short-term bottom and from here, GBP is expected to trade sideways to slightly higher. Expected range for today; 1.3730/1.3820”.

Next 1-3 weeks: “We just turned bearish on GBP yesterday and there is no change to the view. Shorter-term momentum has eased and this could lead to a few days of sideway trading first but as long as the ‘stop-loss’ at 1.3890 (level unchanged) is intact, we continue to expect the current weakness to extend lower towards the major 1.3660 support”.