GBP/USD poised for rangebound near term – UOB

In view of FX Strategists at UOB Group, Cable’s outlook stays neutral and is expected to gravitate between 1.2400 and 1.2580 for the next weeks.

Key Quotes

“Against our expectation, GBP surged to hit an overnight high of 1.2495. The strong daily closing suggests further upward pressure towards 1.2550. On the downside, the support at 1.2440 is expected to be strong enough to hold any intraday pullback”.

“Our recent expectation for GBP to extend lower to 1.2285 is proven wrong as the break of the strong 1.2460 resistance led to a sharp rise to an overnight high of 1.2495. The up move is viewed as part of a broader consolidation phase even though the immediate bias is for a probe towards the top of the expected 1.2400/1.2580 range”.