GBP/USD: Clear downside until the 1.2076 low – OCBC

GBP/USD trades close to daily highs at 1.2380 as prints the first positive day, with 0.20% gains on a day, in five. Nonetheless, having lost the 1.24 level, strategists at OCBC Bank see a clear path for cable towards 1.2076 as there are few supports to limit the slide. 

Key quotes

“The lack of progress on the EU-UK Brexit trade talks and the heavy economic prints continue to impart downside pressure on the GBP/USD.” 

“With the 1.2400 support breached, we continue to expect a heavy posture for the cable.”

“Downside support levels are limited until the previous low at 1.2076. Expect 1.2300 to be the immediate target.”