GBP/USD still neutral short term – UOB

In opinion of FX Strategists at UOB Group, Cable should remain within 1.2800/1.3010 range in the next weeks.

Key Quotes

“We indicated yesterday that “a retest of the overnight high at 1.2921 is not ruled out but the next resistance at 1.2950 is likely strong enough to contain any further GBP strength”. GBP hit a high of 1.2916 before easing off quickly. Indicators are showing mixed signals and the choppy consolidation over the past couple of days is expected to persist for a while more. In other words, expect further choppy trading, likely between 1.2840 and 1.2920”.

“The outlook for GBP just turned negative yesterday and there is no change to the view. The current movement is viewed as part of a broad 1.2800/1.3010 consolidation phase. Looking further ahead, GBP has to move clearly below 1.2755/60 to indicate the start of fresh bearish phase”.