GBP/USD: UOB expects the pair to keep declining to 1.2835/40

The UOB Bank retains a negative view of the GBP/USD in an analysis note published yesterday:

"Instead of consolidating as we had expected, the GBP dropped and broke major support at 1.2920-25. The drop came amidst strong bearish momentum, and it is possible that the GBP/USD pair marks new lows compared to that of Wednesday night at 1.2867.

As part of a further decline, the move could extend to 1.2835/40. The next support level is at 1.2790. Resistance levels are at 1.2910, and then 1.2940.

Within the next 1 to 3 weeks, we believe that the GBP/USD will remain under pressure until the pair is able to regain the key resistance level at 1.2990."