GBP / USD at risk of a decline towards the 1.3760 region – UOB

The pound’s downside momentum could extend to the 1.3760 zone on the near-term horizon, currency strategists from UOB Group.

24 hour perspective: “We highlighted last Friday that the improvement in bearish momentum could lead to the pound moving below 1.3860, but the next support at 1.3820 is probably out of reach. We underestimated the bearish momentum as the GBP plunged to 1.3779 earlier to rebound. strong bounce has room to extend, but any advance will likely be limited to a test of 1.3900. The next resistance at 1.3930 is unlikely to enter the picture. Support is at 1.3820 followed by 1.3790 “.

Next 1-3 weeks: “Last Friday (Feb 5, pair at 1.3890), we highlighted that short-term momentum was starting to improve, but the pound had to close below 1.3820 before a sustained decline could be expected. Subsequently, the The British pound briefly fell to 1.3779 before bouncing to close at 1.3831. Bearish momentum has improved a bit and the GBP could drop to 1.3760 in the next few days. On the upside, a break of 1.3965 would indicate the current slight downward pressure. “

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