UOB Research discusses GBP/USD tactical technical outlook and adopts a slightly bearish bias in the near-term,
"While we indicated yesterday that GBP is likely to trade within a 1.2900/1.3200 range, we noted that “looking forward, the prospect for a breach of 1.2900 appears to be higher”," UOB notes.
"The sudden lurch lower in GBP and the subsequent weak daily closing in NY (1.2927, -0.53%) suggests that the risk of a break of 1.2900 has increased. The next support level of note below 1.2900 is at 1.2850. From here, GBP is expected to stay on the back foot unless it moves back above 1.3020," UOB adds.