GBP/USD sticks to the consolidative mood – UOB

FX Strategists at UOB Group noted Cable is still seen within the 1.3460/1.3680 band for the time being.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for GBP to retest the 1.3640 level first before the risk of a pullback would increase’. GBP subsequently rose to 1.3648 before easing off slightly. The advance to 1.3648 lacks momentum and the bias for today is on the downside. That said, any weakness is likely limited to 1.3580 (minor support is at 1.3600). Resistance is at 1.3650 followed the major level at 1.3680.”

Next 1-3 weeks: “There is no change in our view from Monday (04 Oct, spot at 1.3570). As highlighted, the current movement in GBP is viewed as part of a consolidation phase and GBP could trade within a 1.3460/1.3680 range for now. Looking ahead, a break of 1.3680 could trigger a rise in GBP but any advance is unlikely to challenge 1.3750.”