According to UOB Group currency strategists Quek Ser Leang and Lee Sue Ann, further GBP/USD decline should find support around 1.2140 In the next weeks.
24 hour view: “Yesterday we highlighted that ‘momentum is building rapidly and a break of 1.2200 would not be surprising’. We added that ‘next support at 1.2140 is probably out of reach for now’. Our view proved correct as GBP/USD fell down to 1.2165 before recovering. Although the downside pressure seems to have eased, GBP/USD could drop below 1.2165. However, 1.2140 seems still out of reach for now. Resistance is found at 1.2240, followed by 1.2270” .
Next 1-3 weeks: “Yesterday (May 12, GBP/USD at 1.2240), we highlighted that improving bearish momentum suggests GBP/USD could break 1.2200. We added that ‘next support is at 1.2140’. Subsequently, GBP/USD broke 1.2200 and fell to 1.2165 Weakness seems likely to continue, although short-term oversold conditions could slow the pace of the decline Next support below 1.2140 is at 1.2100 To the upside, breakout of 1.2300 (the ‘strong resistance’ level was yesterday at 1.2380) would indicate that the weakness started late last week is over.”
Source: Fx Street