GBP/USD sticks to the neutral tone near term – UOB

FX Strategists at UOB Group still remain neutral on Cable, which is expected to stay within 1.2800 and 1.2975 in the next weeks.

Key Quotes

“While GBP edged lower as expected, the down-move did not reach the 1.2840 target (low of 1.2855). Downward pressure has eased with the subsequent sideway trading and the downside risk appears to be limited for today. From here, allow for a retest of 1.2855/60 but 1.2830 is expected to hold for a recovery to 1.2910”.

“We continue to hold the view that GBP is in a consolidation phase even though the immediate bias if for a probe lower towards the bottom of the expected 1.2800/1.2975 sideway trading range. At this stage, a sustained move below the major 1.2800 support is not expected. Resistance is at 1.2910 but the key level is closer to 1.2975”.