The research team at UOB Group noted the bearish outlook still persist around GBP/USD.

Key Quotes

“The major support highlighted at 1.2930 was not threatened as GBP rebounded strongly from a low of 1.2954. A temporary bottom is likely in place and the current corrective recovery appears incomplete. From here, allow for a dip to 1.3000 but 1.2950 is expected to hold for a stronger rebound to 1.3080”.

“Shorter-term momentum is waning rapidly and this coupled with oversold conditions has increased the risk of a short term low. Those who are short from last week (see FX Insight on 14/9/16, spot at 1.3195) should consider taking partial profit at current level. In the meanwhile, stop-loss remains unchanged at 1.3120”.