GBP/USD has shown strong volatility of late. What is the near-term, technical outlook for the pair?
Here is their view, courtesy of eFXdata:
UOB Research discusses GBP/USD technical outlook and adopts a bearish bias in the near-term.
“When GBP surged to 1.2200 on 27 Mar, we indicated that the “recovery in GBP has scope to extend higher but prospect for a move beyond 1.2550 is not high for now”. GBP subsequently extended its gain to 1.2484, traded sideways for several days before lurching lower last Friday (03 Apr) and came close to taking out our ‘strong support’ level at 1.2205. While the ‘strong support’ is still intact, upward pressure has dissipated with the sharp and rapid decline,” UOB notes.
“The immediate risk from here is tilted to the downside but any weakness is viewed as part of a broad 1.1950/1.2420 range (a sustained decline below 1.1950 is not expected),” UOB adds.
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