GBP/USD a test of 1.2080 remains on the cards – UOB

Peter Chia, FX Strategist at UOB Group, believes Cable could attempt another visit to lows in the 1.2080 area.

Key Quotes

“GBP/USD had no follow through from a better than expected UK 3Q prelim GDP (2.3% y/y vs 2.1% est), with an initial spike to 1.2273 quickly faded to fresh sessions lows of 1.2149”.

“The disappointing price action in cable overnight is uncannily similar to that of AUD/USD prior day after the Australia’s 3Q CPI beat. Following that same pattern, one can expect the weakness in GBP to possibly extend towards 1.2080/1.2100 in the coming sessions”.