GBP/USD sidelined between 1.2300 and 1.2600 – UOB

Cable should remain within a consolidative theme in the next 1-3 week, according to strategists at UOB Group.

Key Quotes

“While we noted that 1.2300 is a solid support and held the view that only a daily closing below this level would shift the current neutral outlook for GBP to bearish, the strong rebound of 200 pips from the low of 1.2313 yesterday was unexpected”.

“Despite the improved undertone, it is too early to view the current GBP strength as part of a sustained upmove”.

“It is more likely that GBP has moved back into the 1.2300/1.2600 sideway consolidation range as expected previously”.

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