GBP/USD stays sidelined near term – UOB Group

In opinion of FX Strategists at UOB Group, Cable should remain with the consolidative theme between 1.2350/1.2670.

Key Quotes

“In line with expectation, GBP moved higher but failed to move clearly above the major 1.2580 resistance (high of 1.2582). The rapid pull-back from the peak suggests that a temporary top is in place. That said, the current movement is likely part of a broader consolidation range and not the start of sustained down-move”.

“There is not much to add as GBP traded in a relatively narrow 1.2475/1.2550 range yesterday. The recent choppy swings have resulted in a mixed outlook and the near-term direction is unclear. We turned neutral about one week ago and at this stage, there are no early indications that GBP is about to embark on a sustained directional move. In other words, we continue to hold a neutral view and expect choppy consolidation within a 1.2350/1.2670 range”.