GBP/USD in a 1.2920/1.3100 range – UOB

In opinion of FX Strategists at UOB Group, Cable’s outlook remains neutral, and it is expected to gravitate between 1.2920 and 1.3100 in the next 1-3 weeks.

Key Quotes

“GBP rose to hit high of 1.3084 but the up-move was quickly reversed. The sharp drop from the high suggests that a temporary top is likely in place. That said, downward momentum is not strong at this stage and any further decline is expected to encounter solid support at 1.3000 ahead of the stronger level at 1.2970. Resistance is at 1.3060 followed by 1.3090. The latter level is expected to be strong enough to cap any intraday rebound”.

“We indicated yesterday that “an intraday move above 1.3060 is not ruled out but a sustained up-move is not expected”. In line with expectation, GBP edged above the previously expected 1.2870/1.3060 consolidation range but eased off quickly after touching a high of 1.3084. From here, the outlook for GBP is still neutral even though this pair is expected to trade sideways at a higher range of 1.2920/1.3100”.