GBP/USD still capped by 1.3320 – UOB

The research team at UOB Group expects Cable to remain on a sideline pattern with gains capped around 1.3320.

Key Quotes

“GBP rebounded to a high of 1.3165 but eased off quickly. Downward momentum is beginning to improve and the risk appears to be tilted to the downside from here. Last week’s 1.3065 low is acting as a strong support for now but a break of this level could lead to a quick drop to 1.3005/10”.

“We shifted to a neutral stance about 2 weeks ago and since then GBP has been trading choppily within a broad range. However, downward momentum has improved somewhat but only a clear break below the major 1.2960 support would indicate the start of a sustained down-move”.