GBP/USD likely between 1.2850 and 1.3050 – UOB

FX Strategists at UOB Group see Cable gravitating between 1.2850 and 1.3050 in the next weeks.

Key Quotes

“GBP eased off quickly after hitting a high of 1.3040 last Friday. Despite the pullback from the high, the undertone is still positive and a retest of the major 1.3040/50 resistance would not be surprising. However, a sustained move above this level seems unlikely. On the downside, support is at 1.2980 but the stronger level is closer to 1.2950”.

“There is not much to add as GBP rebounded quickly last Friday to hit a high of 1.3040, holding just below the top end of our expected 1.2850/1.3050 consolidation range. While the undertone has improved, it is not enough to shift the current neutral outlook to bullish. That said, an intraday move above 1.3050 is not ruled out but GBP has to register a NY close above 1.3085 to indicate the start of a bullish phase”.