GBP/USD within a consolidative range – UOB

FX Strategists at UOB Group noted Cable is expected to navigate a 1.2480/1.2750 range in the near term.

Key Quotes

“Against our expectation, GBP moved above the strong 1.2670 resistance (high of 1.2701) before dropping sharply to hit 1.2548. The undertone is still weak and further downmove towards 1.2530 seems likely. Only a move back above 1.2630 would indicate that the immediate downward bias has eased”.

“We just shifted to a neutral stance yesterday and there is no change to the view. The current movement is viewed as part of a consolidation phase, likely within a broad 1.2480/1.2750 range”.