GBP/USD keeps the neutral stance, more rangebound likely – UOB

In opinion of FX Strategists at UOB, GBP/USD points to a continuation of the sideline pattern in the near term.

Key Quotes

“Instead of extending higher as expected, GBP reversed quickly and dropped to an overnight low of 1.2385. The down-move appears to have scope to extend lower but strong support can be expected near 1.2355 (ahead of the major support at 1.2300/05)”.

“As highlighted yesterday, despite the strong rebound from the Monday’s low of 1.2313, it is too early to expect to a sustained up-move. The strong pull-back yesterday reinforces our current neutral view and we continue to expect GBP to trade choppily, likely within a broad 1.2300/1.2600 range”.

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