GBP/USD: Bearish momentum prevails, support seen at 1.1406 – OCBC

GBP/USD stays defensive after bouncing off the lowest levels since 1985. Economists at OCBC Bank expect the pair to remain under downside pressure.

Bearish momentum on daily chart intact

“Bearish momentum on daily chart intact but shows tentative signs of fading while RSI shows early signs of turnaround from oversold conditions.”

“Bounce not ruled out though GBP short as a stagflation proxy trade remains intact.”

“Support at 1.1406. Resistance at 1.1620, 1.17 levels.”