GBP/USD decline should be temporary – UOB

In view of analysts at UOB Group, the current downside in GBP/USD could be limited in the next 1-3 weeks.

Key Quotes

“Despite the deep pull-back, the down-move from the recent high 1.4738 still appears to be a 'correction' and further sustained weakness is not expected. From here, allow for a dip to 1.4590 but 1.4550 is likely strong enough to hold for a recovery to 1.4670”.

“While the pull-back form the recent high of 1.4738 has been rather resilient than expected, downward momentum is not strong and we view the decline as a short-term correction. As long as 1.4550 is intact, further GBP strength towards 1.4770 in the coming days cannot be ruled out just yet”.