GBP/USD downside alleviated above 1.45 – UOB

Analysts at UOB Group argued GBP/USD needs to clear 1.45 in order to gain further upside bias.

Key Quotes

“In line with expectation, the initial bounce in GBP held below 1.4505 (high of 1.4480) but the subsequent drop exceeded the 1.4400 target. While further GBP weakness is not ruled out, downward momentum is not strong and any down-move is unlikely to move significantly below 1.4350”.

“A daily closing below 1.4400 would indicate the start of a sustained down-move with an immediate target of 1.4300. This appears to be a likely scenario unless GBP can reclaim 1.4500/05 within this couple of days”.