GBP/USD still neutral near term – UOB

FX Strategists at UOB Group believe Cable should keep gravitating between 1.3100 and 1.3320 in the next weeks.

Key Quotes

24-hour view: “The initial up-move in GBP did not have enough momentum to re-test the 1.3280 resistance (high of 1.3267). The mild upward pressure has eased with the rapid pull-back from the high. From here, GBP is expected to trade sideways, likely within a 1.3210/1.3275 range”.

Next 1-3 weeks: “There is not much to add as GBP registered an ‘inside day’ yesterday and traded within a relatively narrow range of 1.3211/1.3267. That said, the undertone has improved somewhat but at this stage, it is premature to expect a clear break above the top of the expected 1.3065/1.3320 range. In view of the improved undertone, we are narrowing the expected consolidation range to 1.3100/1.3320”.