GBP/USD back in range – UOB

FX Strategists at UOB Group keep the neutral stance on Cable for the near term.

Key Quotes

“GBP dipped below the 1.2405/10 support (low of 1.2402) before rebounding strongly to close on a strong note. The recovery appears to have scope to extend further but any up move is expected to face stiff resistance at 1.2530 (next resistance is at 1.2580)”.

“GBP tested the minor support at 1.2405 yesterday but rebounded strongly after hitting a low of 1.2402. The recent negative undertone has eased with the sharp bounce and this pair has likely moved into a 1.2400/1.2580 consolidation range. In other words, the overall neutral phase that started earlier this month is still intact”.