If GBP/USD closes below 1.3000 it could trigger a deeper pullback to the 1.2900 regioncurrency strategists at UOB Group suggest.
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24 hour view: “We highlighted last Friday that ‘while there is room for GBP/USD to weaken, break of major support at 1.3050 looks unlikely’. Subsequent weakness exceeded our expectations as GBP/USD fell to 1.3028. weakness would not surprise and a break of 1.3000 looks likely.That said, the next major support at 1.2900 is not expected to be threatened, at least not for today (there is another support at 1.2950).Resistance is at 1.3075, followed by 1.3100. “
Next 1-3 weeks: “Last Friday (March 11, GBP/USD at 1.3100), we highlighted that GBP/USD could drop below 1.3050, but barring further downside momentum, the next support at 1.3000 could be out of bounds. range. GBP/USD subsequently fell to 1.3028. Downside momentum has increased, though not by much. From here GBP/USD could break 1.3000 and if it can close below this support, it is likely to trigger further weakness towards 1.2900 Overall the weak phase in GBP/USD that started over 2 weeks ago is intact as long as it doesn’t move above 1.3170 (‘strong resistance’ was at 1.3220 last Friday ).
Source: Fx Street
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