GBP/USD stays neutral near term – UOB

According to FX Strategists at UOB Group, Cable is expected to stay sidelined in the next weeks, likely between 1.3080 and 1.3280.

Key Quotes

24-hour view: “GBP dropped to a low of 1.3087 before staging a sharp swing higher to hit a high of 1.3201. While the rapid up-move appears to be running ahead of itself, a move towards 1.3220 would not be surprising. At this stage, a sustained break above this level is not expected (next resistance is at 1.3250). Support is at 1.3155 followed by 1.3120. The 1.3087 low is not expected to come into the picture for now”.

Next 1-3 weeks: “GBP slipped to a low of 1.3087 last Friday but rebounded strongly and ended the day on a positive note. While the undertone has weakened somewhat, we continue to hold a neutral view for this pair. The current movement is viewed as part of a consolidation phase even though the immediate bias is for GBP to edge lower and test the bottom of the expected 1.3080/1.3280 consolidation range. At this stage, a sustained move below this level is not expected”.