GBP/USD remains neutral, a test of 1.4280 appears unlikely – UOB

Cable’s outlook remains neutral, while a potential visit to the 1.4280 region seems to have lost some legs in the near term.

Key Quotes

24-hour view: “While GBP broke above 1.4085 as expected, the anticipated ‘pop higher’ to 1.4125 did not materialize. From a high of 1.4096, GBP dropped to a low of 1.4015 before swinging higher quickly to end the day near the peak. The choppy price action has resulted in a mixed outlook but we continue to detect a positive undertone and this could lead to another attempt to move towards 1.4125. At this stage, a clear break above this level seems unlikely (next resistance is at 1.4160). Support is at 1.4050 followed by the 1.4015 low”.

Next 1-3 weeks: “There is not much to add as we continue to detect a mild positive undertone in GBP. While the odds have diminished, another attempt to move higher to test the major 1.4280 resistance is not ruled out just yet. Only a clear break below 1.4000 would indicate that the current mild upward pressure has eased. That said, GBP has to move and stay above 1.4100 soon or the odds for a move to 1.4280 would diminish further”.