GBP/USD in a 1.2750/1.2950 range – UOB

According to FX Strategists at UOB Group, Cable’s stance remains neutral and is likely to gravitate between 1.2750 and 1.2950 in the near term.

Key Quotes

“We indicated yesterday that “the current pull-back is expected to extend lower towards 1.2840”. In line with expectation, GBP dropped to a low of 1.2831 but the subsequent strong and rapid rebound was unexpected. The up-move appears to have scope to extend higher but last week’s high near 1.2965 is expected to offer very strong resistance (next resistance at 1.3000)”.

“We just shifted from a bullish to neutral stance yesterday and there is no change to the view. GBP is likely trading in a 1.2750/1.2950 consolidation range and only a clear and sustained break above last week’s 1.2965 peak would shift the outlook to bullish again”.