GBP/USD keeps the 1.2080/1.2350 range – UOB

In view of the FX research team at UOB Group, GBP/USD is expected to remain in a consolidative range between 1.2080 and 1.2350 in the near term.

Key Quotes

“The strong support highlighted at 1.2150 yesterday was tested with a low of 1.2144. The subsequent strong up-move from the low stalled just below 1.2250 (high of 1.2149). The undertone is still positive and a move above 1.2250 would not be surprising from here. However, 1.2275 is another major resistance and this level may not be easy to break. Support is at 1.2195 and the 1.2144 low seen yesterday is unlikely to be challenged for now”.

“The undertone for GBP has improved somewhat with the strong daily closing yesterday. However, the current outlook is still viewed as neutral and we continue to expect sideway trading between 1.2080 and 1.2350 (even though the nearterm bias is towards the upside)”.