GBP/USD door open for a test of 1.4330 – UOB

The research team at UOB Group have suggested GBP/USD could re-test the area of 1.4330 in the next 1-3 weeks.

Key Quotes

“The anticipated GBP weakness exceeded our expectation by taking out the major 1.4400 support (low of 1.4385)”.

“The expected pull-back in GBP has been more rapid than expected. Immediate pressure is still on the downside and the current decline could extend further to last month’s low near 1.4330/35”.

“This level is a major support and may not be easy to break. Overall, GBP would likely stay on the defensive in the coming days unless it can move and stay above 1.4550 (1.4505 is already a strong short-term resistance)”.