GBP/USD keeps the neutral perspective – UOB

Cable is likely to navigate between a 1.2850/1.3050 range in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

“In line with expectation, GBP tested the major 1.3040/50 resistance before easing off (high has been 1.3043). The positive undertone has eased and the current movement is viewed as part of a consolidation phase. In other words, sideways trading is expected for today even though the immediate bias is for a probe lower towards the bottom of the expected 1.2960/1.3035 consolidation range”.

“There is not much to add as GBP rebounded quickly last Friday to hit a high of 1.3040, holding just below the top end of our expected 1.2850/1.3050 consolidation range. While the undertone has improved, it is not enough to shift the current neutral outlook to bullish. That said, an intraday move above 1.3050 is not ruled out but GBP has to register a NY close above 1.3085 to indicate the start of a bullish phase”.