GBP/USD next support remains at 1.1500 – UOB

GBP/USD is expected to remain supported around the 1.1500 area in the next weeks, according to the research team at UOB Group.

Key Quotes

“GBP dropped to a low of 1.2227 during NY hours before rebounding quickly. The short-term outlook is still clouded by the spectacular ‘flash crash’ earlier on Friday. From here, further choppy trading is expected, likely within a broad 1.2300/1.2530 range”.

“The rapid decrease in volatility after the ‘flash crash’ on Friday was unexpected. While the bearish phase that started in mid-September is still intact, the 1.1500 level may not be revisited so soon, if at all. That said, confirmation of a short term low is only upon a move back above 1.2610”.